A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking

Abstract Purpose – This paper aims to systematically review the existing studies on the relationship of Shari’ah governance (SG), as represented by the Shari’ah supervisory board (SSB), with firm performance of Islamic banks (IBs), to suggest opportunities for future research in this field. Desi...

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Main Authors:	Haron, Razali, Nomran, Naji
Format:	Article
Language:	English
Published:	Emerald Publishing Limited 2020
Subjects:	HG Finance HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/78723/ http://irep.iium.edu.my/78723/ http://irep.iium.edu.my/78723/ http://irep.iium.edu.my/78723/7/78723%20-a%20systematic%20literature%20review%20on.pdf

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recordtype	eprints
spelling	iium-787232020-02-26T03:14:00Z http://irep.iium.edu.my/78723/ A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking Haron, Razali Nomran, Naji HG Finance HG3368 Islamic Banking and Finance Abstract Purpose – This paper aims to systematically review the existing studies on the relationship of Shari’ah governance (SG), as represented by the Shari’ah supervisory board (SSB), with firm performance of Islamic banks (IBs), to suggest opportunities for future research in this field. Design/methodology/approach – By adopting a systematic literature review, 21 empirical and theoretical papers published in Scopus concerning the relationship between SSB and performance of IBs were selected for review and analysis. Findings – In light of the existing research studies’ limitations, this paper suggests that the effect of SSB on IBs’ performance still requires more empirical analyses using alternative analytical methods, alternative measures, and different periods (during crisis and non-crisis). Besides that, these studies should take into account the differences across jurisdictions in their SG models, the degree of agencies’ intervention in SG practices, the control over cross-memberships of scholars, and the differences across IBs in the position of SSB in the organization structure. Practical implications – The analysis undertaken in this paper would address the literature gaps on the effect of SSB on IBs’ performance as this study serves as a guide for the researchers, academicians, and interested researchers from Islamic international autonomous non-for-profit organizations, e.g. AAOIFI and IFSB in research related to this important area. Importantly, the findings of this study would support regulators and related authorities across jurisdictions with suggestions on improving the current SG practices. Originality/value – This paper presents a critical review of the existing research on SSB and IB performance and suggests new variables, measurements, analytical methods, and new issues for researchers in this area. Thus, it identifies the literature gap that still needs further empirical investigation and a suitable way to close it. Keywords Shari’ah governance, Shari’ah supervisory board, Performance, Islamic banks, Systematic literature review Paper type Literature review Emerald Publishing Limited 2020-02-14 Article PeerReviewed application/pdf en http://irep.iium.edu.my/78723/7/78723%20-a%20systematic%20literature%20review%20on.pdf Haron, Razali and Nomran, Naji (2020) A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking. Islamic Economic Studies (ahead-of-print no). ISSN 1319-1616 (In Press) https://www.emerald.com/insight/content/doi/10.1108/IES-06-2019-0013/full/html https://doi.org/10.1108/IES-06-2019-0013
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG Finance HG3368 Islamic Banking and Finance
spellingShingle	HG Finance HG3368 Islamic Banking and Finance Haron, Razali Nomran, Naji A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking
description	Abstract Purpose – This paper aims to systematically review the existing studies on the relationship of Shari’ah governance (SG), as represented by the Shari’ah supervisory board (SSB), with firm performance of Islamic banks (IBs), to suggest opportunities for future research in this field. Design/methodology/approach – By adopting a systematic literature review, 21 empirical and theoretical papers published in Scopus concerning the relationship between SSB and performance of IBs were selected for review and analysis. Findings – In light of the existing research studies’ limitations, this paper suggests that the effect of SSB on IBs’ performance still requires more empirical analyses using alternative analytical methods, alternative measures, and different periods (during crisis and non-crisis). Besides that, these studies should take into account the differences across jurisdictions in their SG models, the degree of agencies’ intervention in SG practices, the control over cross-memberships of scholars, and the differences across IBs in the position of SSB in the organization structure. Practical implications – The analysis undertaken in this paper would address the literature gaps on the effect of SSB on IBs’ performance as this study serves as a guide for the researchers, academicians, and interested researchers from Islamic international autonomous non-for-profit organizations, e.g. AAOIFI and IFSB in research related to this important area. Importantly, the findings of this study would support regulators and related authorities across jurisdictions with suggestions on improving the current SG practices. Originality/value – This paper presents a critical review of the existing research on SSB and IB performance and suggests new variables, measurements, analytical methods, and new issues for researchers in this area. Thus, it identifies the literature gap that still needs further empirical investigation and a suitable way to close it. Keywords Shari’ah governance, Shari’ah supervisory board, Performance, Islamic banks, Systematic literature review Paper type Literature review
format	Article
author	Haron, Razali Nomran, Naji
author_facet	Haron, Razali Nomran, Naji
author_sort	Haron, Razali
title	A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking
title_short	A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking
title_full	A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking
title_fullStr	A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking
title_full_unstemmed	A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking
title_sort	systematic literature review on shari’ah governance mechanism and firm performance in islamic banking
publisher	Emerald Publishing Limited
publishDate	2020
url	http://irep.iium.edu.my/78723/ http://irep.iium.edu.my/78723/ http://irep.iium.edu.my/78723/ http://irep.iium.edu.my/78723/7/78723%20-a%20systematic%20literature%20review%20on.pdf
first_indexed	2023-09-18T21:50:52Z
last_indexed	2023-09-18T21:50:52Z
_version_	1777413759588892672

A systematic literature review on Shari’ah governance mechanism and firm performance in Islamic banking

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