Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?

This study aims to provide new empirical evidence on whether the impact of Shari’ah Supervisory Board (SSB) characteristics on Islamic Banks (IBs) performance can be affected by the size of the bank by using a sample of 25 banks for the period from 2007 to 2015. Six SSB characteristics were employed...

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Main Authors:	Nomran, Naji Mansour, Haron, Razali, Hassan, Rusni
Format:	Article
Language:	English
Published:	IIUM Press 2017
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/61288/ http://irep.iium.edu.my/61288/ http://irep.iium.edu.my/61288/1/61288_Bank%20performance%20and%20shari%E2%80%99ah%20supervisory%20board.pdf

id	iium-61288
recordtype	eprints
spelling	iium-612882018-01-11T08:10:07Z http://irep.iium.edu.my/61288/ Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter? Nomran, Naji Mansour Haron, Razali Hassan, Rusni HG3368 Islamic Banking and Finance This study aims to provide new empirical evidence on whether the impact of Shari’ah Supervisory Board (SSB) characteristics on Islamic Banks (IBs) performance can be affected by the size of the bank by using a sample of 25 banks for the period from 2007 to 2015. Six SSB characteristics were employed as explanatory variables which are (size, cross-membership, educational qualification, reputation, experience and change in the composition). By employing random-effects GLS and GMM method for a robustness check, it is found that four SSB characteristics (size, cross-membership, educational qualification and change in the composition) significantly affect the performance of IBs when the full sample is examined. However, the findings vary when the sample is divided into two subsamples, large and small bank. Four SSB characteristics (size, cross-membership, reputation and experience) are found to play an important role in enhancing the performance of large IBs while only (reputation and experience) significantly affect the performance of small IBs. This confirms that the impact of SSB characteristics on performance concentrates more on large IBs as compared to the small banks. Thus, there is a lack of Shari’ah governance practices in the small IBs in Malaysia and Indonesia as compared to the large banks. IIUM Press 2017-12-31 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61288/1/61288_Bank%20performance%20and%20shari%E2%80%99ah%20supervisory%20board.pdf Nomran, Naji Mansour and Haron, Razali and Hassan, Rusni (2017) Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter? Journal of Islamic Finance, 6 (Special Issue 2017). pp. 174-187. ISSN 2289-2109 E-ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/265
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Nomran, Naji Mansour Haron, Razali Hassan, Rusni Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?
description	This study aims to provide new empirical evidence on whether the impact of Shari’ah Supervisory Board (SSB) characteristics on Islamic Banks (IBs) performance can be affected by the size of the bank by using a sample of 25 banks for the period from 2007 to 2015. Six SSB characteristics were employed as explanatory variables which are (size, cross-membership, educational qualification, reputation, experience and change in the composition). By employing random-effects GLS and GMM method for a robustness check, it is found that four SSB characteristics (size, cross-membership, educational qualification and change in the composition) significantly affect the performance of IBs when the full sample is examined. However, the findings vary when the sample is divided into two subsamples, large and small bank. Four SSB characteristics (size, cross-membership, reputation and experience) are found to play an important role in enhancing the performance of large IBs while only (reputation and experience) significantly affect the performance of small IBs. This confirms that the impact of SSB characteristics on performance concentrates more on large IBs as compared to the small banks. Thus, there is a lack of Shari’ah governance practices in the small IBs in Malaysia and Indonesia as compared to the large banks.
format	Article
author	Nomran, Naji Mansour Haron, Razali Hassan, Rusni
author_facet	Nomran, Naji Mansour Haron, Razali Hassan, Rusni
author_sort	Nomran, Naji Mansour
title	Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?
title_short	Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?
title_full	Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?
title_fullStr	Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?
title_full_unstemmed	Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?
title_sort	bank performance and shari’ah supervisory board attributes by islamic banks: does bank size matter?
publisher	IIUM Press
publishDate	2017
url	http://irep.iium.edu.my/61288/ http://irep.iium.edu.my/61288/ http://irep.iium.edu.my/61288/1/61288_Bank%20performance%20and%20shari%E2%80%99ah%20supervisory%20board.pdf
first_indexed	2023-09-18T21:26:55Z
last_indexed	2023-09-18T21:26:55Z
_version_	1777412252713877504

Bank performance and shari’ah supervisory board attributes by Islamic banks: Does bank size matter?

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