Publication: Corporate Governance and Performance of Shariah - Compliant Companies
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Date
2020
Journal Title
Journal ISSN
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Publisher
IGI Global
Abstract
This chapter examines the relationship between corporate governance practices and firm performance. The characteristics of the board of Shari'ah-compliant companies in consumer products counter of Bursa Malaysia were examined against the firm's performance using data from 77 companies from 2014 to 2016. Based on the result of multiple regression; board size, Muslim chairman, and Muslim director have a weak positive correlation with the performance of the firms. However, directors with Shari'ah background seem to have a negative correlation with the performance of the firms. The findings of the chapter would be very useful to the regulators to improve the Malaysian Code of Corporate Governance (MCCG). The findings also help to fill the gap on scarce literature that study the relationship between the corporate governance practices involving Muslim characteristics and performance.
Description
Handbook of Research on Theory and Practice of Global Islamic Finance (2 Volumes)
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Citation
Hanefah, M. B., Kamaruddin, M. I., Masruki, R., & Ismail, M. M. (2020). Corporate Governance and Performance of Shariah-Compliant Companies. In A. Rafay (Ed.), Handbook of Research on Theory and Practice of Global Islamic Finance (pp. 547-566). IGI Global. https://doi.org/10.4018/978-1-7998-0218-1.ch029