{"title":"The Impact of Shariah Governance and Corporate Governance on the Risk Management Practices: Evidence from Local and Foreign Islamic Banks in Malaysia","authors":"S. Embi, Zurina Shafii","doi":"10.33102/JMIFR.V15I2.174","DOIUrl":null,"url":null,"abstract":"The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"11 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2018-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"9","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"The Journal of Muamalat and Islamic Finance Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.33102/JMIFR.V15I2.174","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 9
Abstract
The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.
本研究的目的是研究伊斯兰教法治理和公司治理(CG)对马来西亚当地伊斯兰银行和在马来西亚经营的外国伊斯兰银行的风险管理实践(RMPs)的影响。伊斯兰教法治理包括伊斯兰教法审查(SR)和伊斯兰教法审计(SA)变量。本研究还评估了这两类银行的RMPs、CG、SR和SA的水平。利用SPSS version 20对RMPs、CG、SR、SA进行主成分分析(PCA)。从PCA中,为CG、SR和RMPs分别提取一个成分或因素,而为SA提取另外两个因素。主要数据是通过自我管理的调查问卷收集的。问卷包括四个方面;CG、SR、SA和RMPs。从300份可用问卷中获得的数据进行了相关分析和回归分析,并进行了独立t检验。相关分析结果表明,4个变量之间存在较大的正相关关系,表明4个变量之间存在较强的显著性关系。从进行的回归分析来看,CG、SR和SA一起解释了52.3%的RMPs,而CG是影响RMPs的最具影响力的变量。进行的独立t检验表明,本地和外国伊斯兰银行之间的CG和SA存在显著差异。然而,两种类型的银行在SR和RMPs方面没有显著差异。这项研究为知识体系做出了贡献,对学者、行业参与者、监管机构和其他利益相关者都是有益的。