Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks

Abstract Purpose – The purpose of this paper is to investigate the empirical linkage between the composition of Shariah Committee and the extent of Shariah governance disclosure in 16 licensed Islamic banks in Malaysia. Design/methodology/approach – This paper adopted a multiple regression analys...

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Main Authors:	Noordin, Nazrul Hazizi, Kassim, Salina
Format:	Article
Language:	English English
Published:	Emerald Publishing Limited 2019
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/78934/ http://irep.iium.edu.my/78934/ http://irep.iium.edu.my/78934/ http://irep.iium.edu.my/78934/1/78934%20-%20Does%20Shariah%20committee%20composition%20influence%20Shariah%20governance%20disclosure.pdf http://irep.iium.edu.my/78934/2/78934%20-%20Does%20Shariah%20committee%20composition%20influence%20Shariah%20governance%20disclosure%20-%20scopus.pdf

id	iium-78934
recordtype	eprints
spelling	iium-789342020-02-20T09:22:06Z http://irep.iium.edu.my/78934/ Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks Noordin, Nazrul Hazizi Kassim, Salina HG3368 Islamic Banking and Finance Abstract Purpose – The purpose of this paper is to investigate the empirical linkage between the composition of Shariah Committee and the extent of Shariah governance disclosure in 16 licensed Islamic banks in Malaysia. Design/methodology/approach – This paper adopted a multiple regression analysis to test the association between the composition of Shariah Committee and the extent of Shariah governance disclosure. A disclosure index was developed to measure the extent of Shariah governance disclosure made by the Islamic banks. Whereas to measure the extent of Shariah governance disclosure, this study used content analysis as a method of coding qualitative information in the annual reports. Findings – Using 2009 data, the study found a significant association between different compositions of the Shariah Committee in the Malaysian Islamic banks and their Shariah governance disclosure level before the introduction of the Shariah Governance Framework (SGF). However, because of less variation in the composition of Shariah Committee after the introduction of SGF 2010, a weak linkage was found between the composition of ShariahCommittee and the extent of Shariah disclosure of Malaysian Islamic banks in 2013. Research limitations/implications – Findings of this study offer several implications for further improvements of the Malaysian Islamic banking sector in particular, and other Islamic banks globally. As better composition of Shariah Committee in terms of its size, academic background and other relevant expertise would result in effective monitoring system leading to better practices of Shariah disclosure, this finding highlights the relevance and important role of the Shariah Committee in improving voluntary Shariah disclosure level of the Islamic banks. This finding suggests that ample focus has to be channelled in strengthening the composition of Shariah Committee in crafting future development of SGF in Malaysia. It is also suggested that Islamic banks need to give priority in providing more education and training in various areas of expertise to their Shariah Committee members that would result in greater confidence of investors, stakeholders and the society on the information disclosed by the banks. Originality/value – The novelty of this paper lies in highlighting the importance of different composition of Shariah Committee in determining the extent of voluntary disclosure made on Shariah matters by the Islamic banks. Emerald Publishing Limited 2019-03-04 Article PeerReviewed application/pdf en http://irep.iium.edu.my/78934/1/78934%20-%20Does%20Shariah%20committee%20composition%20influence%20Shariah%20governance%20disclosure.pdf application/pdf en http://irep.iium.edu.my/78934/2/78934%20-%20Does%20Shariah%20committee%20composition%20influence%20Shariah%20governance%20disclosure%20-%20scopus.pdf Noordin, Nazrul Hazizi and Kassim, Salina (2019) Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks. Journal of Islamic Accounting and Business Research, 10 (2). pp. 158-184. ISSN 1759-0817 https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2016-0047/full/html http://dx.doi.org/10.1108/JIABR-04-2016-0047
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Noordin, Nazrul Hazizi Kassim, Salina Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks
description	Abstract Purpose – The purpose of this paper is to investigate the empirical linkage between the composition of Shariah Committee and the extent of Shariah governance disclosure in 16 licensed Islamic banks in Malaysia. Design/methodology/approach – This paper adopted a multiple regression analysis to test the association between the composition of Shariah Committee and the extent of Shariah governance disclosure. A disclosure index was developed to measure the extent of Shariah governance disclosure made by the Islamic banks. Whereas to measure the extent of Shariah governance disclosure, this study used content analysis as a method of coding qualitative information in the annual reports. Findings – Using 2009 data, the study found a significant association between different compositions of the Shariah Committee in the Malaysian Islamic banks and their Shariah governance disclosure level before the introduction of the Shariah Governance Framework (SGF). However, because of less variation in the composition of Shariah Committee after the introduction of SGF 2010, a weak linkage was found between the composition of ShariahCommittee and the extent of Shariah disclosure of Malaysian Islamic banks in 2013. Research limitations/implications – Findings of this study offer several implications for further improvements of the Malaysian Islamic banking sector in particular, and other Islamic banks globally. As better composition of Shariah Committee in terms of its size, academic background and other relevant expertise would result in effective monitoring system leading to better practices of Shariah disclosure, this finding highlights the relevance and important role of the Shariah Committee in improving voluntary Shariah disclosure level of the Islamic banks. This finding suggests that ample focus has to be channelled in strengthening the composition of Shariah Committee in crafting future development of SGF in Malaysia. It is also suggested that Islamic banks need to give priority in providing more education and training in various areas of expertise to their Shariah Committee members that would result in greater confidence of investors, stakeholders and the society on the information disclosed by the banks. Originality/value – The novelty of this paper lies in highlighting the importance of different composition of Shariah Committee in determining the extent of voluntary disclosure made on Shariah matters by the Islamic banks.
format	Article
author	Noordin, Nazrul Hazizi Kassim, Salina
author_facet	Noordin, Nazrul Hazizi Kassim, Salina
author_sort	Noordin, Nazrul Hazizi
title	Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks
title_short	Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks
title_full	Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks
title_fullStr	Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks
title_full_unstemmed	Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks
title_sort	does shariah committee composition influence shariah governance disclosure? evidence from malaysian islamic banks
publisher	Emerald Publishing Limited
publishDate	2019
url	http://irep.iium.edu.my/78934/ http://irep.iium.edu.my/78934/ http://irep.iium.edu.my/78934/ http://irep.iium.edu.my/78934/1/78934%20-%20Does%20Shariah%20committee%20composition%20influence%20Shariah%20governance%20disclosure.pdf http://irep.iium.edu.my/78934/2/78934%20-%20Does%20Shariah%20committee%20composition%20influence%20Shariah%20governance%20disclosure%20-%20scopus.pdf
first_indexed	2023-09-18T21:51:06Z
last_indexed	2023-09-18T21:51:06Z
_version_	1777413774398980096

Does Shariah committee composition influence Shariah governance disclosure? evidence from Malaysian Islamic banks

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