Diversity of Shari’ah supervisory board and the performance of Islamic banks: evidence from an emerging economy of Pakistan
Purpose Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from the stakeholders’ perspective in the context of Pakistan. Design/methodology/approach Random-effects m...
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| Veröffentlicht in: | Journal of Islamic accounting and business research 2024-01, Vol.15 (1), p.1-31 |
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| container_title | Journal of Islamic accounting and business research |
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| creator | Khan, Ismail Khan, Ikram Ullah Uddin, Mohammad Jasim Khan, Safeer Ullah Marwat, Jahanzeb |
| description | Purpose
Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from the stakeholders’ perspective in the context of Pakistan.
Design/methodology/approach
Random-effects model and generalized method of moment are used to investigate the impact of SSB diversity on IBs’ performance across a panel data of 22 Islamic banks in Pakistan from 2005 to 2020 inclusive.
Findings
The findings of this study show that SSB size, SSB relevant educational background diversity, bank’s size and bank’s stability have a positive impact on IBs’ performance. In contrast, SSB age, nationality and cross-membership diversities have a negative impact on IBs’ performance. Moreover, SSB gender, tenure and general educational diversities have no significant impact on IBs’ performance.
Research limitations/implications
SSB diversity and IBs practices are different across different jurisdictions. This study is conducted on IBs in Pakistan because of data constraints; thus, the results of this study may not be generalizable to other countries' IBs.
Practical implications
In structuring the SSBs’ framework, the regulatory authorities and policymakers should consider mandating an ideal SSB size and hiring relevant qualified members with low cross-membership to improve IBs' performance. Thus, the structure potentially attracts Muslim stakeholders, enhances their satisfaction and improves IBs' performance.
Social implications
Having diversified members in the SSB, IBs equally benefit both individual and group stakeholders in society. Diversity in SSB members enhances IBs' performance and the social welfare of various stakeholders in society.
Originality/value
To the best of the authors' knowledge, this is the first empirical research that examines comprehensively the impact of SSB structural and demographic diversities on IBs' performance in the context of Pakistan. This paper contributes to the unique Shari’ah governance structure in the context of Pakistan. Additionally, this study may serve to assist IBs’ stakeholders in better comprehending the SSB practices of IBs in Pakistan. |
| doi_str_mv | 10.1108/JIABR-09-2021-0240 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_econi</sourceid><recordid>TN_cdi_emerald_primary_10_1108_JIABR-09-2021-0240</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2906714625</sourcerecordid><originalsourceid>FETCH-LOGICAL-c342t-94ee63a477c245cdb7c6e7049ba65ba6fe3ac713f73a1b41afa08bbdd43ddafb3</originalsourceid><addsrcrecordid>eNptkctKxDAUhosoKOoLuAq4rubWpnXn3RFB8bIOp7k40WkzJp2BWQi-hq_nk5g6ggoGQkLyf-eQL1m2Q_AeIbjavxwdHt3muM4ppiTHlOOVbIOIos5xRcTqr_16th3jE06D0aqs-Eb2euLmJkTXL5C36G4MwX28vcMYxdnUhLmLPixQ4yFoBJ1G_digdG59aKFTZmBGcQKtU6iB7jkeIDN32gxXNvg2Mci0Jjy67hEZ5TvffvW5gWcXe-i2sjULk2i2v9fN7OHs9P74Ir-6Ph8dH17linHa5zU3pmTAhVCUF0o3QpVGYF43UBZpWsNACcKsYEAaTsACrppGa860BtuwzWx3WXca_MvMxF4--VnoUktJa1wKwktapBRdplTwMQZj5TS4FsJCEiwH0_LLtMS1HEzLwXSC0BIanufiD1KJquA1K0WKkO9IUgET_X_ZPx_IPgF0NI2n</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2906714625</pqid></control><display><type>article</type><title>Diversity of Shari’ah supervisory board and the performance of Islamic banks: evidence from an emerging economy of Pakistan</title><source>Standard: Emerald eJournal Premier Collection</source><creator>Khan, Ismail ; Khan, Ikram Ullah ; Uddin, Mohammad Jasim ; Khan, Safeer Ullah ; Marwat, Jahanzeb</creator><creatorcontrib>Khan, Ismail ; Khan, Ikram Ullah ; Uddin, Mohammad Jasim ; Khan, Safeer Ullah ; Marwat, Jahanzeb</creatorcontrib><description>Purpose
Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from the stakeholders’ perspective in the context of Pakistan.
Design/methodology/approach
Random-effects model and generalized method of moment are used to investigate the impact of SSB diversity on IBs’ performance across a panel data of 22 Islamic banks in Pakistan from 2005 to 2020 inclusive.
Findings
The findings of this study show that SSB size, SSB relevant educational background diversity, bank’s size and bank’s stability have a positive impact on IBs’ performance. In contrast, SSB age, nationality and cross-membership diversities have a negative impact on IBs’ performance. Moreover, SSB gender, tenure and general educational diversities have no significant impact on IBs’ performance.
Research limitations/implications
SSB diversity and IBs practices are different across different jurisdictions. This study is conducted on IBs in Pakistan because of data constraints; thus, the results of this study may not be generalizable to other countries' IBs.
Practical implications
In structuring the SSBs’ framework, the regulatory authorities and policymakers should consider mandating an ideal SSB size and hiring relevant qualified members with low cross-membership to improve IBs' performance. Thus, the structure potentially attracts Muslim stakeholders, enhances their satisfaction and improves IBs' performance.
Social implications
Having diversified members in the SSB, IBs equally benefit both individual and group stakeholders in society. Diversity in SSB members enhances IBs' performance and the social welfare of various stakeholders in society.
Originality/value
To the best of the authors' knowledge, this is the first empirical research that examines comprehensively the impact of SSB structural and demographic diversities on IBs' performance in the context of Pakistan. This paper contributes to the unique Shari’ah governance structure in the context of Pakistan. Additionally, this study may serve to assist IBs’ stakeholders in better comprehending the SSB practices of IBs in Pakistan.</description><identifier>ISSN: 1759-0817</identifier><identifier>EISSN: 1759-0817</identifier><identifier>EISSN: 1759-0825</identifier><identifier>DOI: 10.1108/JIABR-09-2021-0240</identifier><language>eng</language><publisher>Bingley: Emerald Publishing Limited</publisher><subject>Banks ; Competition ; Compliance ; Corporate governance ; Developing countries ; Financial institutions ; Generalized method of moments ; Intervention ; Islamic financing ; LDCs ; Muslims ; Religion ; Stakeholders ; Supervision</subject><ispartof>Journal of Islamic accounting and business research, 2024-01, Vol.15 (1), p.1-31</ispartof><rights>Emerald Publishing Limited</rights><rights>Emerald Publishing Limited.</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c342t-94ee63a477c245cdb7c6e7049ba65ba6fe3ac713f73a1b41afa08bbdd43ddafb3</citedby><cites>FETCH-LOGICAL-c342t-94ee63a477c245cdb7c6e7049ba65ba6fe3ac713f73a1b41afa08bbdd43ddafb3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2021-0240/full/html$$EHTML$$P50$$Gemerald$$H</linktohtml><link.rule.ids>314,776,780,21674,27901,27902,53219</link.rule.ids></links><search><creatorcontrib>Khan, Ismail</creatorcontrib><creatorcontrib>Khan, Ikram Ullah</creatorcontrib><creatorcontrib>Uddin, Mohammad Jasim</creatorcontrib><creatorcontrib>Khan, Safeer Ullah</creatorcontrib><creatorcontrib>Marwat, Jahanzeb</creatorcontrib><title>Diversity of Shari’ah supervisory board and the performance of Islamic banks: evidence from an emerging economy of Pakistan</title><title>Journal of Islamic accounting and business research</title><description>Purpose
Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from the stakeholders’ perspective in the context of Pakistan.
Design/methodology/approach
Random-effects model and generalized method of moment are used to investigate the impact of SSB diversity on IBs’ performance across a panel data of 22 Islamic banks in Pakistan from 2005 to 2020 inclusive.
Findings
The findings of this study show that SSB size, SSB relevant educational background diversity, bank’s size and bank’s stability have a positive impact on IBs’ performance. In contrast, SSB age, nationality and cross-membership diversities have a negative impact on IBs’ performance. Moreover, SSB gender, tenure and general educational diversities have no significant impact on IBs’ performance.
Research limitations/implications
SSB diversity and IBs practices are different across different jurisdictions. This study is conducted on IBs in Pakistan because of data constraints; thus, the results of this study may not be generalizable to other countries' IBs.
Practical implications
In structuring the SSBs’ framework, the regulatory authorities and policymakers should consider mandating an ideal SSB size and hiring relevant qualified members with low cross-membership to improve IBs' performance. Thus, the structure potentially attracts Muslim stakeholders, enhances their satisfaction and improves IBs' performance.
Social implications
Having diversified members in the SSB, IBs equally benefit both individual and group stakeholders in society. Diversity in SSB members enhances IBs' performance and the social welfare of various stakeholders in society.
Originality/value
To the best of the authors' knowledge, this is the first empirical research that examines comprehensively the impact of SSB structural and demographic diversities on IBs' performance in the context of Pakistan. This paper contributes to the unique Shari’ah governance structure in the context of Pakistan. Additionally, this study may serve to assist IBs’ stakeholders in better comprehending the SSB practices of IBs in Pakistan.</description><subject>Banks</subject><subject>Competition</subject><subject>Compliance</subject><subject>Corporate governance</subject><subject>Developing countries</subject><subject>Financial institutions</subject><subject>Generalized method of moments</subject><subject>Intervention</subject><subject>Islamic financing</subject><subject>LDCs</subject><subject>Muslims</subject><subject>Religion</subject><subject>Stakeholders</subject><subject>Supervision</subject><issn>1759-0817</issn><issn>1759-0817</issn><issn>1759-0825</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2024</creationdate><recordtype>article</recordtype><sourceid>BENPR</sourceid><recordid>eNptkctKxDAUhosoKOoLuAq4rubWpnXn3RFB8bIOp7k40WkzJp2BWQi-hq_nk5g6ggoGQkLyf-eQL1m2Q_AeIbjavxwdHt3muM4ppiTHlOOVbIOIos5xRcTqr_16th3jE06D0aqs-Eb2euLmJkTXL5C36G4MwX28vcMYxdnUhLmLPixQ4yFoBJ1G_digdG59aKFTZmBGcQKtU6iB7jkeIDN32gxXNvg2Mci0Jjy67hEZ5TvffvW5gWcXe-i2sjULk2i2v9fN7OHs9P74Ir-6Ph8dH17linHa5zU3pmTAhVCUF0o3QpVGYF43UBZpWsNACcKsYEAaTsACrppGa860BtuwzWx3WXca_MvMxF4--VnoUktJa1wKwktapBRdplTwMQZj5TS4FsJCEiwH0_LLtMS1HEzLwXSC0BIanufiD1KJquA1K0WKkO9IUgET_X_ZPx_IPgF0NI2n</recordid><startdate>20240102</startdate><enddate>20240102</enddate><creator>Khan, Ismail</creator><creator>Khan, Ikram Ullah</creator><creator>Uddin, Mohammad Jasim</creator><creator>Khan, Safeer Ullah</creator><creator>Marwat, Jahanzeb</creator><general>Emerald Publishing Limited</general><general>Emerald Group Publishing Limited</general><scope>OQ6</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>7X1</scope><scope>7XB</scope><scope>AFKRA</scope><scope>ANIOZ</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>K6~</scope><scope>L.-</scope><scope>PQBIZ</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20240102</creationdate><title>Diversity of Shari’ah supervisory board and the performance of Islamic banks: evidence from an emerging economy of Pakistan</title><author>Khan, Ismail ; Khan, Ikram Ullah ; Uddin, Mohammad Jasim ; Khan, Safeer Ullah ; Marwat, Jahanzeb</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c342t-94ee63a477c245cdb7c6e7049ba65ba6fe3ac713f73a1b41afa08bbdd43ddafb3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2024</creationdate><topic>Banks</topic><topic>Competition</topic><topic>Compliance</topic><topic>Corporate governance</topic><topic>Developing countries</topic><topic>Financial institutions</topic><topic>Generalized method of moments</topic><topic>Intervention</topic><topic>Islamic financing</topic><topic>LDCs</topic><topic>Muslims</topic><topic>Religion</topic><topic>Stakeholders</topic><topic>Supervision</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Khan, Ismail</creatorcontrib><creatorcontrib>Khan, Ikram Ullah</creatorcontrib><creatorcontrib>Uddin, Mohammad Jasim</creatorcontrib><creatorcontrib>Khan, Safeer Ullah</creatorcontrib><creatorcontrib>Marwat, Jahanzeb</creatorcontrib><collection>ECONIS</collection><collection>CrossRef</collection><collection>Accounting & Tax Database</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ProQuest Central UK/Ireland</collection><collection>Accounting, Tax & Banking Collection</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ProQuest One Business</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central Basic</collection><jtitle>Journal of Islamic accounting and business research</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Khan, Ismail</au><au>Khan, Ikram Ullah</au><au>Uddin, Mohammad Jasim</au><au>Khan, Safeer Ullah</au><au>Marwat, Jahanzeb</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Diversity of Shari’ah supervisory board and the performance of Islamic banks: evidence from an emerging economy of Pakistan</atitle><jtitle>Journal of Islamic accounting and business research</jtitle><date>2024-01-02</date><risdate>2024</risdate><volume>15</volume><issue>1</issue><spage>1</spage><epage>31</epage><pages>1-31</pages><issn>1759-0817</issn><eissn>1759-0817</eissn><eissn>1759-0825</eissn><abstract>Purpose
Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from the stakeholders’ perspective in the context of Pakistan.
Design/methodology/approach
Random-effects model and generalized method of moment are used to investigate the impact of SSB diversity on IBs’ performance across a panel data of 22 Islamic banks in Pakistan from 2005 to 2020 inclusive.
Findings
The findings of this study show that SSB size, SSB relevant educational background diversity, bank’s size and bank’s stability have a positive impact on IBs’ performance. In contrast, SSB age, nationality and cross-membership diversities have a negative impact on IBs’ performance. Moreover, SSB gender, tenure and general educational diversities have no significant impact on IBs’ performance.
Research limitations/implications
SSB diversity and IBs practices are different across different jurisdictions. This study is conducted on IBs in Pakistan because of data constraints; thus, the results of this study may not be generalizable to other countries' IBs.
Practical implications
In structuring the SSBs’ framework, the regulatory authorities and policymakers should consider mandating an ideal SSB size and hiring relevant qualified members with low cross-membership to improve IBs' performance. Thus, the structure potentially attracts Muslim stakeholders, enhances their satisfaction and improves IBs' performance.
Social implications
Having diversified members in the SSB, IBs equally benefit both individual and group stakeholders in society. Diversity in SSB members enhances IBs' performance and the social welfare of various stakeholders in society.
Originality/value
To the best of the authors' knowledge, this is the first empirical research that examines comprehensively the impact of SSB structural and demographic diversities on IBs' performance in the context of Pakistan. This paper contributes to the unique Shari’ah governance structure in the context of Pakistan. Additionally, this study may serve to assist IBs’ stakeholders in better comprehending the SSB practices of IBs in Pakistan.</abstract><cop>Bingley</cop><pub>Emerald Publishing Limited</pub><doi>10.1108/JIABR-09-2021-0240</doi><tpages>31</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 1759-0817 |
| ispartof | Journal of Islamic accounting and business research, 2024-01, Vol.15 (1), p.1-31 |
| issn | 1759-0817 1759-0817 1759-0825 |
| language | eng |
| recordid | cdi_emerald_primary_10_1108_JIABR-09-2021-0240 |
| source | Standard: Emerald eJournal Premier Collection |
| subjects | Banks Competition Compliance Corporate governance Developing countries Financial institutions Generalized method of moments Intervention Islamic financing LDCs Muslims Religion Stakeholders Supervision |
| title | Diversity of Shari’ah supervisory board and the performance of Islamic banks: evidence from an emerging economy of Pakistan |
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