DOES CORPORATE GOVERNANCE MATTER FOR ASSET QUALITY OF ISLAMIC BANKS?

Authors

Ejaz Aslam, IIUM Institute of Islamic Banking and Finance, MalaysiaFollow
Aziz Ur-Rehman, IIUM Institute of Islamic Banking and Finance, MalaysiaFollow
Anam Iqbal, IIUM Institute of Islamic Banking and Finance, MalaysiaFollow

Document Type

Article

Abstract

This study investigates the impact of corporate governance on asset quality of Islamic banks by employing data on 129 Islamic banks from 29 countries spanning the period from 2008 to 2017. The study shows that asset quality of Islamic banks is positively and significantly sensitive to an increase in board independence, Shariah board, and audit committee effectiveness. The study finds that female participation in management as CEOs seems to detract from good performance and that more board meetings can be harnessed to improve banks’ asset quality. These empirical findings have practical policy implications regarding asset quality management and board construction within the Islamic banking sector.

Recommended Citation

Aslam, Ejaz; Ur-Rehman, Aziz; and Iqbal, Anam (2021) "DOES CORPORATE GOVERNANCE MATTER FOR ASSET QUALITY OF ISLAMIC BANKS?," Bulletin of Monetary Economics and Banking: Vol. 24: No. 2, Article 6.
DOI: https://doi.org/10.21098/bemp.v24i2.1344
Available at: https://bulletin.bmeb-bi.org/bmeb/vol24/iss2/6

First Page

221

Last Page

236

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Malaysia

Affiliation

IIUM Institute of Islamic Banking and Finance