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The Impact of the Application of Corporate Governance Rules on the Performance of Islamic Banks: Evidence from the GCC Region أثر تطبيق قواعد حوكمـة الشركات في أداء المصـارف الإسلاميـة: حالة دول منطقة الخليج

Author

Listed:
  • Chaouki Bourakba

    (Assistant professor, Faculty of Economics and Administrative Sciences Al-Imam Muhammad Ibn Saud Islamic University Riyadh, Saudi Arabia)

  • Abdelhalim Gherbi

    (Associate professor, Faculty of Economics and Administrative Sciences Al-Imam Muhammad Ibn Saud Islamic University Riyadh, Saudi Arabia)

Abstract

Through this paper we seek to determine the relationship between the variables of corporate governance and financial performance of Islamic banks. Due to the special nature of the banking industry; which affects financial stability of the entire economy, we discussed theoretically the concept of corporate governance in the banking sector in general and Islamic banking in particular. Much of the discussion has been devoted in highlighting the specificity of governance in Islamic banks. These banks are subject to ‘Double Governance’; Anglo-Saxon governance system and Islamic Governance System. We, then, measured the impact of corporate governance variables on financial performance through an empirical study on a sample of Islamic banks during the period 2005-2012 in the GCC region. هدفت الدراسة إلى تحديد العلاقة بين متغيرات حوكمة الشركات والأداء المالي للمصارف الإسلامية. وتطرقت إلى خصوصية الحوكمة في المصارف الإسلامية بعد الحديث عن أهميتها في القطاع المصرفي بشكل عام، ثم قامت بقياس أثر متغيرات حوكمة الشركات في الأداء المالي على عينة من المصارف الإسلامية في منطقة الخليج العربي خلال الفترة 2005-2012م. وتوصلت دراسة الحالة إلى وجود علاقة قوية جدًا بين متغيرات الحوكمة والأداء المالي للمصارف الإسلامية محل الدراسة؛ حيث أظهرت النتائج أن هناك علاقة إيجابية بين العائد على الأصول وكل من تركيبة مجلس الإدارة وحجم مجلس الإدارة وعدد اللجان في المجلس، وكذلك عدد أعضاء هيئة الرقابة الشرعية؛ فكلما ارتفع حجم المتغير؛ ارتفع العائد على الأصول، بينما يتضح أن هناك علاقة سلبية بين العائد على الأصول ومتغير تركز الملكية.

Suggested Citation

  • Chaouki Bourakba & Abdelhalim Gherbi, 2015. "The Impact of the Application of Corporate Governance Rules on the Performance of Islamic Banks: Evidence from the GCC Region أثر تطبيق قواعد حوكمـة الشركات في أداء المصـارف الإسلاميـة: حالة دول منطقة," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 28(3), pages 123-158, October.
    • Handle: RePEc:abd:kauiea:v:28:y:2015:i:3:no:3:p:123-158
    DOI: 10.4197/Islec.28-3.3
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    Citations

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    Cited by:

    1. Abdulhadi Abdulrahim Tashkandi, 2019. "The Impact of Governance Mechanisms on Profitability of Islamic Banks in the GCC Countries During 2005-2016 أثر آليات الحوكمة على ربحية المصارف الإسلامية في دول مجلس التعاون الخليجي خلال الفترة 2005م ," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 32(3), pages 163-190, October.

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