Islamic Corporate Governance

Permasalahan ekonomi yang terjadi dalam beberapa dekade terakhir ini seperti krisis ekonomi yang berulang-ulang, kesenjangan sosial, eskalasi ekonomi dan sosial dan lainnya memunculkan beberapa isu. Setidaknya ada dua isu penting yang cukup mendapat banyak perhatian dari banyak kalangan yaitu isu Corporate Governance (CG) dan isu Corporate Social Responsibility (CSR). Dua isu ini dinilai bagian dari upaya untuk mewujudkan ekonomi yang berpihak pada banyak kepentingan (stakeholder).
Hadir dan berkembangnya sistem ekonomi syariah mengindikasikan bahwa adanya pergeseran orientasi ekonomi mainstream yang sebelumnya menekankan pada prinsip memaksimalkan keuntungan pemilik modal (shareholder value) menjadi memaksimalkan kepentingan banyak pihak (stakeholder value). Banyak pihak yang menyakini bahwa pengabaian terhadap kepentingan masyarakat dan lingkungan dapat mengakibatkan ketidakseimbangan dalam distribusi kesejahteraan sosial-ekonomi yang berakibat pada rusaknya tatanan sosial.
Buku ini disusun dalam rangka memperkaya khazanah keilmuan dibidang ekonomi syariah tentang Islamic Corporate Governance (ICG) dan Islamic Corporate Social Responsibility (ICSR) secara teori dan praktik pada Lembaga Keuangan Syariah yang merujuk pada standar keuangan syariah internasional seperti standar AAOIFI dan IFSB, serta hasil riset pakar pada jurnal-jurnal  internasional.

The stability and resilience that Islamic banking (IBs) industry has shown during the current global crisis is based on the principles of Islamic economic laws that rest on equity, participation, and business ethics. The literature on Islamic corporate governance (ICG) is growing quite rapidly and the industry has emerged as an alternative to its conventional counterpart. This paper critically reviews the existing literature on ICG with a particular focus on the significance and functions of Shari'ah supervisory board (SSB), which differentiate IBs from CBs. This review describes ICG framework, elaborates and summarizes SSB functions, compares IBs with CBs and assesses the impact of SSB on IB's performance. The key findings show that majority of the literature on SSB describes advising and monitoring as the two main functions of a Shari'ah board and past literature supports positive association between Shari'ah governance and the performance of IBs. This work might be helpful for scholars and practitioners approaching this field to study the role and functioning of SSB.

This paper attempts to give a brief overview of existing Shari’ah Governance framework in Malaysia, compare with AAOIFI and IFSB standards and guidelines, identify current issues, and recommend measures to improve existing practices. The study finds that a great number of research have been carried out to study Shari’ah Governance framework in Malaysia, Indonesia, GCC, MENA, UK, and other OIC member countries. It can be concluded that the plurality in Shari’ah Governance practice across regions and countries may ensure success and support innovation in the short run, but, in order to establish credibility and promote Islamic Finance as a comprehensive financial system in the long run uniformity is desirable. A sustainable and viable Shari’ah Governance framework, which will not only provide credibility to IFIs but also ensure transparency, trust, ethical behavior, underlying faith and belief and ethics and  also help protecting the stakeholders right and fulfill the broader principle of Maqasid al-Shari’ah (foundational goals of the Shari’ah).

Since its inception as a field of study, sociology has been very interested in explaining revolutions as social phenomena. Attempts at explaining revolutions have revolved around three main questions: Why do a great number of people act collectively against a regime?
How do a large group of people mobilize themselves against the armed power of a regime, making their social power capable of defeating it? And what has been the outcome of revolutions? Sociological studies have focused mostly on the first two questions, with the last question receiving scant attention. The aim of this article is to offer a tentative analysis of the 1979 Islamic Revolution in Iran in the light of the third question, that is, what has been its outcome? In order to answer the question, I rely on certain presumptions in sociology known as ‘rational choice theory.’1 According to rational choice theory, a revolution’ is not considered to be a blind collective reaction to different and painful conditions. Rather, the revolutionaries are posited as self-aware individuals who voluntarily seek the means to change and improve their own situation and that of society. It
is mainly because of this aspiration that people follow them. Of course, the conscious acts of revolutionaries, like all acts, can have both intended and unintended consequences.

Job Satisfaction has the significance as a vital ingredient to supplement the organization’s vitality. Employee Participation, Feedback, Goal Clarity and Autonomy helps employer to nurture job satisfaction that in turn affect the employee turnover. Quantitative research will be carried out in Telecommunication, Education and Banking sector organizations of twin cities of Rawalpindi and Islamabad to explore the impact of its antecedents on Job Satisfaction and that of job satisfaction on employee turnover. The result has shown that employee participation and goal clarity has significant impact on job satisfaction while Job satisfaction and employee participation has significant impact on Turnover Intentions.

Key Words Job Satisfaction, Employee Participation, Goal Clarity, Feedback, Autonomy, Employee Turnover.

Tata kelola perusahaan merupakan isu yang tidak pernah usang untuk terus dipelajari oleh para pelaku bisnis, akademisi, pembuat kebijakan dan lain sebagainya. Pemahaman tentang praktik tata kelola perusahaan terus berkembang dari waktu ke waktu. Kajian tentang corporate governance mulai disinggung pertama kali oleh Berle and Means pada tahun 1932 ketika membuat buku yang menganalisis pemisahan kepemilikan dan pengendalian. Prinsip Tata Kelola Perusahaan Konvensional sebenarnya tercakup dalam prinsip Tata Kelola Perusahaan Islam. Transparansi mengacu pada shiddiq, akuntabilitas mengacu pada shiddiq dan amanah, tanggung jawab mengacu pada amanah, tabliq, dan fathanah, keadilan mengacu pada shiddiq dan amanah.

Objective – The objective of the study is to analyze the application of Islamic Corporate Governance (ICG) on Sustainable Business, focusing on Islamic Financial Performance as a mediating variable in Islamic Banks in Indonesia. Methodology/Technique – The population and sample in the study consists of 9 Islamic Banks. The study uses partial least square (PLS), and the data is collected from public reports for the period between 2010 and 2015. The variables of the study are: Islamic Corporate Governance as an independent variable, Sustainable Business as the dependent variable and Financial Performance as a mediating variable. Findings – The study shows that Islamic Corporate Governance (ICG) has a positive significant effect on Islamic Financial Performance, Islamic Corporate Governance (ICG) has no effect on Sustainable Business, and Islamic Financial Performance has a positive effect on Sustainable Business. The findings also show that Islamic Financial Performance can have an indirect impact to mediating the effect of Islamic Corporate Governance on Sustainable Business Islamic Bank. Novelty – Using Murabahah ratio to measure Islamic Financial Performance.

Objective –The aim of paper is to investigate whether traditional management, is the Islamic boarding school has implemented the Islamic Corporate Governance Methodology/Technique – This research is a qualitative study using case study. Key Informant in this research is the General Secretary of Bahrul Ulum Foundation. The analysis technique used is the technique belong to Yin (2009) that divides three techniques for the analysis of case studies: the pairing pattern analysis techniques, the technique of making the explanation, the time series analysis technique. Findings – The findings indicate that in its implementation, corporate governance at Islamic boarding school based on the value of Tawhid. Furthermore, principle of transparency, accountability, responsibility, independence and fairness being the corporate governance principles at an Islamic boarding school. Research Implications: This study uses only one boarding school. Future studies are expected to examine more than one boarding school to obtain mixed results. Novelty – Based on the finding, the study suggests the ICG formulation will be found appropriate for every boarding school in Indonesia.

This study aims to obtain empirical evidence about the effect of corporate governance on profitability and its impact on company value. To measure the level of implementation of corporate governance, an index that has been developed based on relevant regulations and previous research is used. This study uses a purposive sampling method from the constituents of the Indonesian Syariah Stock Index (ISSI) in 2017. There are 50 companies that meet the criteria for the study sample. Data analysis using the Structural Equation Model (SEM) approach with the GeSCA Version 1.5 Web analyzer. The results of this study indicate that corporate governance has a positive and significant effect on profitability, while corporate governance does not affect the value of the company. Profitability affects the value of the company. Corporate governance affect the value of the company mediated by profitability. Abstract: company value, governance, profitability, Islamic stock index Pendahuluan Dalam pesatnya perkembangan pasar modal akhir-akhir ini, perusahaan-perusahaan go public berlomba-lomba untuk mencapai tujuanutama perusahaannya, yang bukan lagi hanyaingin memaksimumkan laba namun jugamemaksimumkan nilai perusahaan. Nilaiperusahaan yang maksimum juga akanmeningkatkan nilai pemegang saham yangditandai dengan tingkat pengembalian investasiyang tinggi pada pemegang saham. 1 Peningkatan nilai perusahaan yang tinggi merupakan tujuan jangka panjang yang seharusnya dicapai perusahaan yang akan tercermin dari harga

The raison d'être of this paper is to supply basic insights into the principle of Shura in Islamic Banking; the idea of a centralised Sharia' governance system, i.e. the centralised Sharia' board, as the highest authority on Sharia' issues pertaining to Islamic Banking in a country; its distinguishing features than that of a de-centralised system, i.e. the Sharia' board at the individual IFI level; and the pros and cons of the two said governance systems. These were analysed by referring to the provisions of the Holy Quran and the Sunnah, Ijma’ (consensus) of Sharia' scholars, and recent reports on the Islamic Banking industry as a whole. Despite the fact that the double-digit growth of Islamic Banking appears to be a promising sign towards the current US$ 2 trillion industry and further expected to cross the US$ 6.5 trillion mark by 2020, there remains concern over the lack of standardisation on adopted governance standards among IFIs across key regions such as Qatar, Indonesia, Malaysia, Bahrain, Saudi Arabia, United Arab Emirates, Pakistan, etc. Correspondingly, there has been much debate surrounding the issue of whether the Islamic Banking industry requires a centralised Sharia' board at the state level to complement the Sharia' boards at IFIs’ individual level. The fact that the industry is already equipped with two prominent standard-setting agencies in the form of the AAOIFI and the IFSB does little to suggest that best governance practices, which centres around the theme of consistency, harmony and uniformity, are on the horizon; at least not whilst their issued standards and guidelines remain voluntary to IFIs. All in all, it is aspired that this paper may assist the reader in evaluating the pros and cons of the whole concept of Sharia' board centralisation. Insha’Allah (God’s willing).

This project is about the impact of corporate and financial factors on the performance of the company. We measured these relationship on the basis of twenty indicators in which ten indicators were of corporate and ten were of financial. The result indicated that the financial tools and corporate governance factors does affect the overall performance of the company. Hence our null hypothesis was been accepted and alternative was rejected. Here in the report it is important to show that all of the factors either of finance or corporate are not so much important some of them have importance for the standards of firm solidity. The independence of board and audit committee are the main influential factors.

"Objective – The objective of the study is to analyze the application of Islamic Corporate Governance (ICG) on Sustainable Business, focusing on Islamic Financial Performance as a mediating variable in Islamic Banks in Indonesia. Methodology/Technique – The population and sample in the study consists of 9 Islamic Banks. The study uses partial least square (PLS), and the data is collected from public reports for the period between 2010 and 2015. The variables of the study are: Islamic Corporate Governance as an independent variable, Sustainable Business as the dependent variable and Financial Performance as a mediating variable. Findings – The study shows that Islamic Corporate Governance (ICG) has a positive significant effect on Islamic Financial Performance, Islamic Corporate Governance (ICG) has no effect on Sustainable Business, and Islamic Financial Performance has a positive effect on Sustainable Business. The findings also show that Islamic Financial Performance can have an indirect impact to mediating the effect of Islamic Corporate Governance on Sustainable Business Islamic Bank. Novelty – Using Murabahah ratio to measure Islamic Financial Performance."

This paper attempts to give a brief overview of existing Shari’ah Governance framework in Malaysia, compare with AAOIFI and IFSB standards and guidelines, identify current issues, and recommend measures to improve existing practices. The study finds that a great number of research have been carried out to study Shari’ah Governance framework in Malaysia, Indonesia, GCC, MENA, UK, and other OIC member countries. It can be concluded that the plurality in Shari’ah Governance practice across regions and countries may ensure success and support innovation in the short run, but, in order to establish credibility and promote Islamic Finance as a comprehensive financial system in the long run uniformity is desirable. A sustainable and viable Shari’ah Governance framework, which will not only provide credibility to IFIs but also ensure transparency, trust, ethical behavior, underlying faith and belief and ethics and also help protecting the stakeholders right and fulfill the broader principle...