| Title | Sustainable Business Practices and Firm's Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance |
|---|---|
| ID_Doc | 77811 |
| Authors | Jan, AM; Marimuthu, M; Hassan, R; Mehreen |
| Title | Sustainable Business Practices and Firm's Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance |
| Year | 2019 |
| Published | Sustainability, 11, 23 |
| Abstract | This paper examines the moderating role of Islamic corporate governance on the link between sustainable business practices and the firm's financial performance. A post-crisis period sustainability data for the decade of 2008-2017 was collected by the study. For data collection, this study used the weighted content method. The Generalized Method of Moments (GMM) statistical test was used for empirical testing. The results of the study found that the link between sustainable business practices with the firm's financial performance measured from the shareholders' and the management's perspective is positive, while the subjected link measured from the market perspective was found to be insignificant. This implies that the market stakeholders of the Islamic banks are reluctant for their bank's spending on sustainable business practices. Interestingly, the insignificant link between sustainable business practices and market performance became significant with the moderating role of Shariah governance and managerial ownership. It shows that the moderating role of Shariah governance and managerial ownership is giving confidence to market stakeholders of Islamic banks for receiving a higher financial return through sustainable business practices initiatives. These results may provide insights for several policymakers of the Islamic banking industry about integrating vital sustainability practices in their business models and about the balanced moderating role of Islamic corporate governance in the link between sustainable business practice and the firm's financial performance. It provides a roadmap to the Islamic banking industry for efficient management of sustainability practices from an Islamic perspective and subsequently improvement of financial performance through it. |
| https://www.mdpi.com/2071-1050/11/23/6606/pdf?version=1574425573 |
Similar Articles
| ID | Score | Article |
|---|---|---|
78440
|
Aisjah, S; Prabandari, SP; Hamid, W Sustainability Factors of Sharia Banks in Indonesia(2022)Quality-Access To Success, 23, 190 | |
| 17854
|
Saraç, M; Altun, F Sustainability Perception And Implementation Of Islamic Firms: A Research On The Corporate Customers Of Islamic Banks(2022) | |
| 74045
|
Derbali, A Islamic Banking During The Financial Crisis Of 2007(2015)Serbian Journal Of Management, 10, 1 | |
| 67175
|
Osmanovic, N; Puska, A; Thomas, SS; Stojanovic, I Sustainable economic performances of Islamic banks in Gulf countries: Bahrain, Oman, Saudi Arabia and the United Arab Emirates(2022) | |
| 34494
|
Siswanti, I; Riyadh, HA; Nawangsari, LC; Yusoff, YM; Wibowo, MW The impact of digital transformation for sustainable business: the meditating role of corporate governance and financial performance(2024)Cogent Business & Management, 11, 1 | |
| 74772
|
Pratiwi, A Islamic banking contribution in sustainable socioeconomic development in Indonesia An epistemological approach(2016)Humanomics, 32, 2 | |
| 68678
|
Sindhu, MI; Windijarto; Wong, WK; Maswadi, L Implications of corporate social responsibility on the financial and non-financial performance of the banking sector: A moderated and mediated mechanism(2024)Heliyon, 10, 9 | |
| 73022
|
Sharma, D; Kumar, P Prioritizing the attributes of sustainable banking performance(2024)International Journal Of Productivity And Performance Management, 73, 6 | |
| 66934
|
Dicuonzo, G; Donofrio, F; Iannuzzi, AP; Dell'Atti, V The integration of sustainability in corporate governance systems: an innovative framework applied to the European systematically important banks(2022)International Journal Of Disclosure And Governance, 19, 3 | |
| 70797
|
Muhammad, H Islamic Corporate Social Responsibility: An Exploratory Study in Islamic Microfinance Institutions(2020)Journal Of Asian Finance Economics And Business, 7, 12 |