Relationship between the Shariah Council and the Board of Directors and its effect on the financial soundness of Islamic banks
List of Authors
  • Afef Khalil

Keyword
  • Board of Directors, Corporate Governance, Financial Soundness, Islamic Bank, Panel data, Shariah Board

Abstract
  • This research paper aims to examine the relationship between the Shariah Board and the Board of Directors and to investigate its impact on the financial soundness of Islamic banks. We applied Regression analyzes to test the effect of characteristic linking the Shariah Board to the Board of Directors on the financial soundness of the Islamic banking using a Panel data composed of 61 Islamic banks from 2008 to 2014. The findings imply that meetings between the Board of Directors and the Shariah Board negatively impact the Islamic banking soundness. The purpose of this research paper is to provide new empirical ideas and results to increase our knowledge concerning the relationship between the governance and the financial soundness of Islamic banking. Thus, the study seems to be a very useful tool for information that adds value to Islamic banking.

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