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Islamic financial institutions and corporate governance: New insights for agency theory

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dc.contributor.author Safieddine A.
dc.contributor.editor
dc.date 2009
dc.date.accessioned 2017-09-07T07:51:44Z
dc.date.available 2017-09-07T07:51:44Z
dc.date.issued 2009
dc.identifier 10.1111/j.1467-8683.2009.00729.x
dc.identifier.isbn
dc.identifier.issn 09648410
dc.identifier.uri http://hdl.handle.net/10938/12324
dc.description.abstract Manuscript Type: Empirical Research Question-Issue: This paper takes a theory building approach to highlighting variations of agency theory in the unique and complex context of Islamic banks, mainly stemming from the need to comply with Sharia and the separation of cash flow and control rights for a category of investors. Research Findings-Results: The paper provides insights that agency structures in the context of Islamic banking might give rise to trade-offs between Sharia compliance and mechanisms protecting investors' rights. Alternative models of idiosyncratic governance might be effective in balancing the two cornerstones of the agency dynamic. In practice, the paper finds that most of the surveyed Islamic banks appear to recognize the value of governance and institute some basic mechanisms. Nonetheless, some governance flaws relating to audit, control, and transparency are observed, a situation further exacerbated by the fact that investment account holders are not represented on the board, and are not granted control or monitoring rights. This leads to a discussion on the tradeoff between the costs and benefits of such a practice. Theoretical Implications: This study contributes to the agency theory literature by providing theoretical propositions highlighting challenges to this theory whereby mechanisms with the purpose of mitigating agency problems might lead to a divergence from Islamic principles of Sharia. Practical Implications: The paper motivates Islamic banks to improve governance practices currently in place. It alerts policy makers to the need to tailor the regulations to safeguard the interests of all investors without violating the principles of Sharia. © 2009 Blackwell Publishing Ltd.
dc.format.extent
dc.format.extent Pages: (142-158)
dc.language English
dc.publisher MALDEN
dc.relation.ispartof Publication Name: Corporate Governance; Publication Year: 2009; Volume: 17; no. 2; Pages: (142-158);
dc.relation.ispartofseries
dc.relation.uri
dc.source Scopus
dc.subject.other
dc.title Islamic financial institutions and corporate governance: New insights for agency theory
dc.type Article
dc.contributor.affiliation Safieddine, A., School of Business, American University of Beirut, Bliss Street, Beirut, Lebanon, Lebanon, American University of Beirut, Lebanon
dc.contributor.authorAddress Safieddine, A.; School of Business, American University of Beirut, Bliss Street, Beirut, Lebanon, Lebanon; email: as57@aub.edu.lb
dc.contributor.authorCorporate University: American University of Beirut; Faculty: Suliman S. Olayan School of Business; Department: School of Business;
dc.contributor.authorDepartment School of Business
dc.contributor.authorDivision
dc.contributor.authorEmail as57@aub.edu.lb
dc.contributor.authorFaculty Suliman S. Olayan School of Business
dc.contributor.authorInitials Safieddine, A
dc.contributor.authorOrcidID
dc.contributor.authorReprintAddress Safieddine, A (reprint author), Amer Univ Beirut, Sch Business, Corp Governance Program, Bliss St,POB 11-0236, Beirut, Lebanon.
dc.contributor.authorResearcherID
dc.contributor.authorUniversity American University of Beirut
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dc.description.citedCount 9
dc.description.citedTotWOSCount 5
dc.description.citedWOSCount 5
dc.format.extentCount 17
dc.identifier.articleNo
dc.identifier.coden
dc.identifier.pubmedID
dc.identifier.scopusID 62249130156
dc.identifier.url
dc.publisher.address COMMERCE PLACE, 350 MAIN ST, MALDEN 02148, MA USA
dc.relation.ispartofConference
dc.relation.ispartofConferenceCode
dc.relation.ispartofConferenceDate
dc.relation.ispartofConferenceHosting
dc.relation.ispartofConferenceLoc
dc.relation.ispartofConferenceSponsor
dc.relation.ispartofConferenceTitle
dc.relation.ispartofFundingAgency
dc.relation.ispartOfISOAbbr Corp. Gov.
dc.relation.ispartOfIssue 2
dc.relation.ispartOfPart
dc.relation.ispartofPubTitle Corporate Governance
dc.relation.ispartofPubTitleAbbr Corp. Gov.
dc.relation.ispartOfSpecialIssue
dc.relation.ispartOfSuppl
dc.relation.ispartOfVolume 17
dc.source.ID WOS:000263965700003
dc.type.publication Journal
dc.subject.otherAuthKeyword Agency Theory
dc.subject.otherAuthKeyword Board Evaluation
dc.subject.otherAuthKeyword Board of Director Issues
dc.subject.otherAuthKeyword Corporate Governance
dc.subject.otherAuthKeyword Gulf States
dc.subject.otherChemCAS
dc.subject.otherIndex
dc.subject.otherKeywordPlus PERFORMANCE
dc.subject.otherKeywordPlus OWNERSHIP
dc.subject.otherKeywordPlus BOARD
dc.subject.otherWOS Business
dc.subject.otherWOS Business, Finance
dc.subject.otherWOS Management


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