Header menu link for other important links
X
The Impact of Corporate Governance on Islamic Banking Performance: The Case of UAE Islamic Banks
Published in
2017
Abstract
The objective of this research paper is to provide evidence of whether or not Corporate Governance Index has an impact on financial performance of the UAE Islamic banks. Corporate Governance Index is developed from response of surveyed key persons about management, board of directors, shareholders, and Sharia board of bank. It includes rules and procedures to be followed through which objectives for bank are set. The sample consists of (6) Islamic banks working in UAE. Three hypotheses have been developed and tested by applying descriptive statistical methods, correlation, and regression analysis. The study finds that there is a direct positive relationship between profitability measured either by Earnings per Share (EPS), Return on Equity (ROE), and corporate governance. However, there is an insignificant relationship between CGI and Returns on Asset (ROA). Finally, the study found a positive direct relationship between Corporate Governance Index and banks’ financial performance. The regression model can be expressed by following equation: CGI = 1.345 + 1.012 ROE + 0.532 ROA + 0.725 EPS
About the journal
JournalJournal of Banking & Finance
Open AccessNo
Concepts (5)
  •  related image
    Corporate governance
  •  related image
    Governance index
  •  related image
    Islamic banking performance
  •  related image
    Profitability and cgi
  •  related image
    Islamic banking governance index