Corporate governance, Shari'ah governance and financial flexibility: Evidence from the MENA region

IF 2.8 3区 经济学 Q2 BUSINESS, FINANCE
Abdullah Aljughaiman, Aly Salama, Thanos Verousis
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引用次数: 0

Abstract

This article investigates the relationship between corporate governance structures and financial flexibility for conventional and Islamic banks in the Middle East and North Africa (MENA) region. We construct a novel financial flexibility index (FFI) for the banking sector and examine the impact of the Shari'ah supervisory board (SSB), board size, and risk governance on financial flexibility. We find that board size and risk governance significantly affect banks' financial flexibility for Islamic and conventional banks. However, Shari'ah governance rules determine how that relationship is manifested in Islamic banks. We show that SSB size and busy SSBs enhance Islamic banks' financial flexibility. Our results show that Western corporate governance structures may lead to suboptimal financial flexibility. Banking policies should re-evaluate the impact of one-size-fits-all approaches to corporate governance while promoting ‘soft policies’ to banking regulation that are value-enhancing for the banking sector.

公司治理、伊斯兰教法治理和金融灵活性:中东和北非地区的证据
本文研究了中东和北非地区传统银行和伊斯兰银行的公司治理结构与财务灵活性之间的关系。我们为银行业构建了一个新的财务灵活性指数(FFI),并研究了伊斯兰教法监督委员会(SSB)、董事会规模和风险治理对财务灵活性的影响。我们发现,在伊斯兰银行和传统银行中,董事会规模和风险治理对银行的财务灵活性有重大影响。然而,伊斯兰教法的治理规则决定了这种关系在伊斯兰银行中的表现形式。我们的研究结果表明,社会责任委员会的规模和繁忙的社会责任委员会会提高伊斯兰银行的财务灵活性。我们的研究结果表明,西方的公司治理结构可能会导致次优的财务灵活性。银行政策应重新评估 "一刀切 "的公司治理方法的影响,同时促进银行业监管的 "软政策",以提高银行业的价值。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.70
自引率
6.90%
发文量
143
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