IMPACT OF CORPORATE GOVERNANCE ON THE FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN PAKISTAN

Authors

  • Taimoor Ali Shah PhD candidate, Qurtuba University of Science and Information Technology, Peshawar, Pakistan Lecturer NCS University System Peshawar, Pakistan
  • Dr. Naveed Shehzad Associate Professor Qurtuba University of Science and IT Peshawar, Pakistan
  • Umair Ahmad Lecturer Qurtuba University of Science and Information Technology, Peshawar, Pakistan
  • Wajid Mehmood PhD candidate, Qurtuba University of Science and Information Technology, Peshawar, Pakistan, Lecturer NCS University System Peshawar, Pakistan

Keywords:

Corporate Governance, Board Size, Female Director, Age of Experience, Firm Size, Productivity

Abstract

The objective of the study was to examine the impact of corporate governance on the financial performance of Islamic banks working in Pakistan. The population of the study was Islamic banks working in Pakistan and seven (7) Banks were selected as a sample size through simple random sampling technique. The dependent variable was return on assets while independent variables were board size, female director, age of experience, firm size and productivity. Data was collected from the annual reports of Islamic banks websites for the year 2017 to 2021. Panel Diagnostic Test, regression analysis and correlation matrix were used for analysis. Results reflect that firm size, board size and productivity were found positively significant. Whileageof experience was inversely significant and female director was found statistically insignificant. The magnitude of firm size was high as compared to other significant variables. However, female director was found insignificant so it has no impact on return on assets.

References

Abbasi, K. H., Jhatial, A. A., & Halepota, J. A. (2018). Corporate Governance in Pakistan: An Exploratory Study of the Pakistan International Airlines Corporation

Limited. Grassroots, 52(1).

Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of financial economics, 94(2), 291-3

Azhar, K. A., & Mehmood, W. (2018). Does corporate governance affect performance? Evidence from the textile sector of Pakistan. Journal of Southeast Asian Research, 10(1),1-14.

Ahmad, S., Islam, M., Zada, M., Khattak, A., Ullah, R., Han, H., ... & Araya-Castillo, L. (2022). The Influence of Decision Making on Social Inclusion of Persons with Disabilities: A Case Study of Khyber Pakhtunkhwa. International Journal of Environmental Research and Public Health, 19(2), 858.

Aziz, M., Gondal, Z. H., & Ali, S. (2019). Problem relating to Corporate Governance in Pakistan. Advances in Social Sciences Research Journal, 6(7), 353-358.

Bahrain, Z. (2013). Zain Bahrain and the Community. Social/CSR Report.

Bansal, N., & Sharma, A. K. (2016). Audit committee, corporate governance and firm performance: Empirical evidence from India. International Journal of Economics and Finance, 8(3), 103.

Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of corporate finance, 14(3), 257-273.

Bhagat, S., & Bolton, B. (2019). Corporate governance and firm performance: The sequel. Journal of Corporate Finance, 58, 142-168

Downloads

Published

2022-09-30

How to Cite

Ali Shah, T. ., Shehzad, D. N. ., Ahmad, U. ., & Mehmood, W. . (2022). IMPACT OF CORPORATE GOVERNANCE ON THE FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN PAKISTAN. The Journal of Contemporary Issues in Business and Government, 28(3), 97–111. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2361

Issue

Vol. 28 No. 3 (2022): The journal of contemporary issues in business and government

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

You are free to:

  1. Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
  2. Adapt — remix, transform, and build upon the material for any purpose, even commercially.
  3. The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  1. Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  2. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Notices:

You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .

No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.