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Is corporate governance different for Islamic banks? A comparative analysis between the Gulf Cooperation Council and Southeast Asian countries

2014; Inderscience Publishers; Volume: 9; Issue: 1 Linguagem: Inglês

10.1504/ijbge.2014.062769

1741-802X

Rihab Grassa, Hamadi Matoussi,

Working Capital and Financial Performance

Islamic banks are particular financial institutions which generate distinct corporate governance challenges. This study compares the corporate governance attributes between Islamic and conventional banks in the Gulf Cooperation Council (GCC) and in Southeast Asian countries. Moreover, this paper studies the impact of relevant corporate governance variables on the Islamic banks' performance. The sample included 77 large Islamic banks and 85 conventional banks observed over the period 2000–2009. Our findings revealed that there were several divergences between the corporate governance characteristics of Islamic banks and those of conventional banks. These differences originated mainly from the ethical aspects dominating the activities of Islamic banks and the regulatory environment in which they operate. Moreover, we found that board fee, CEO duality and CEO age had a significantly positive effect on the Islamic banks' performance. However, the Shariah board characteristics seemed to be a value creator for Islamic banks.