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Journals / Research Journal of Business and Management / 2018 / Cilt: 5 - Sayı: 1

A COMPARATIVE ANALYSIS OF CORPORATE GOVERNANCE AND BANK PERFORMANCE: ISLAMIC BANKS VERSUS CONVENTIONAL BANKS

Talat ULUSSEVER
Pages
34–50
Publication Date
2018-03-30
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Findings - The results show that boards are strong and the CEO’s are powerful in Islamic banks.

📌 3 Key Takeaways

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Objective & Hypothesis:Purpose - This study examines the relationship between the multi-layer corporate governance model of Islamic banking and bank performance.
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Key Findings & Data:The corporate governance and financial disclosure indices lessen the profitability of Islamic banks as they are negatively significant with performance variables.
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Conclusion & Impact:Findings - The results show that boards are strong and the CEO’s are powerful in Islamic banks.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Corporate Governance · Islamic Banks · Conventional Banks

Abstract

Purpose - This study examines the relationship between the multi-layer corporate governance model of Islamic banking and bank performance. Methodology - The random-effects GLS method for the regression analysis and two-step generalized methods of moments for the robustness check of the findings were utilized. Findings - The results show that boards are strong and the CEO’s are powerful in Islamic banks. While the return variables of Islamic banks are positively correlated with the financial disclosure index and board structure variables, they are negatively correlated with the risk closure index and CEO related variables. The corporate governance and financial disclosure indices lessen the profitability of Islamic banks as they are negatively significant with performance variables. Conclusion - The governance mechanism provides a weak explanation for the changes in shareholders’ value of Islamic banks, which shows that conventional banks have better, more effective, governance system than Islamic banks in this regard.

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Cite This Article

ULUSSEVER, T. (2018). A COMPARATIVE ANALYSIS OF CORPORATE GOVERNANCE AND BANK PERFORMANCE: ISLAMIC BANKS VERSUS CONVENTIONAL BANKS. Research Journal of Business and Management, Cilt: 5 - Sayı: 1, 34–50. https://ajindex.com/articles/238787

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