Search results for: Islamic governance system

Authors: Bi-Huei Tsai

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Previous studies on financial distress prediction choose the conventional failing and non-failing dichotomy; however, the distressed extent differs substantially among different financial distress events. To solve the problem, “non-distressed”, “slightly-distressed” and “reorganization and bankruptcy” are used in our article to approximate the continuum of corporate financial health. This paper explains different financial distress events using the two-stage method. First, this investigation adopts firm-specific financial ratios, corporate governance and market factors to measure the probability of various financial distress events based on multinomial logit models. Specifically, the bootstrapping simulation is performed to examine the difference of estimated misclassifying cost (EMC). Second, this work further applies macroeconomic factors to establish the credit cycle index and determines the distressed cut-off indicator of the two-stage models using such index. Two different models, one-stage and two-stage prediction models, are developed to forecast financial distress, and the results acquired from different models are compared with each other, and with the collected data. The findings show that the two-stage model incorporating financial ratios, corporate governance and market factors has the lowest misclassification error rate. The two-stage model is more accurate than the one-stage model as its distressed cut-off indicators are adjusted according to the macroeconomic-based credit cycle index.

Keywords: Multinomial logit model, corporate governance, company failure, reorganization, bankruptcy

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Authors: Ndagi Salihu

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Corporate governance mechanisms are the control measures for ensuring that all the interests groups are equally represented and management are working towards wealth creation in the interest of all. Therefore, there are many empirical studies during the last three decades on corporate governance and firm performance. However, little is known about the effects of family ownership on the relationship between corporate governance and firm performance, especially in the developing economy like Nigeria. This limit our understanding of the unique governance dynamics of family ownership with regards firm performance. This study examined the impact of family ownership on the relationship between governance mechanisms and financial performance of publicly listed companies in Nigeria. The study adopted quantitative research methodology using correlational ex-post factor design and secondary data from annual reports and accounts of a sample of 23 listed companies for a period of 5 years (2014-2018). The explanatory variables are the board size, board composition, board financial expertise, and board audit committee attributes. Financial performance is proxy by Return on Assets (ROA) and Return on Equity (ROE). Multiple panel regression technique of data analysis was employed in the analysis, and the study found that family ownership has a significant positive effect on the relationships between corporate governance mechanisms and financial performance of publicly listed firms in Nigeria. This finding is the same for both the ROA and ROE. However, the findings indicate that board size, board financial expertise, and board audit committee attributes have a significant positive impact on the ROA and ROE of the sample firms after the moderation. Moreover, board composition has significant positive effect on financial performance of the sample listed firms in terms of ROA and ROE. The study concludes that the use of family ownership in the control of firms in Nigeria could improve performance by reducing the opportunistic actions managers as well as agency problems. The study recommends that publicly listed companies in Nigeria should allow significant family ownership of equities and participation in management.

Keywords: profitability, board characteristics, agency theory, stakeholders

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Authors: Sami Kabir, Sadek Hossain Khoka

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Open Government Data (OGD) refers to all data produced by government which are accessible in reusable way by common people with access to Internet and at free of cost. In line with “Digital Bangladesh” vision of Bangladesh government, the concept of open data has been gaining momentum in the country. Opening all government data in digital and customizable format from single platform can enhance e-governance which will make government more transparent to the people. This paper presents a well-in-progress case study on OGD portal by Bangladesh Government in order to link decentralized data. The initiative is intended to facilitate e-service towards citizens through this one-stop web portal. The paper further discusses ways of collecting data in digital format from relevant agencies with a view to making it publicly available through this single point of access. Further, possible layout of this web portal is presented.

Keywords: e-governance, one-stop web portal, open government data, reusable data, web of data

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Authors: Giorgi Katamadze

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Open public service and accountability towards citizens is an important feature of democratic state based on rule of law. Effective use of electronic resources simplifies bureaucratic procedures, makes direct communications, helps exchange information, ensures government’s openness and in general helps develop electronic/digital democracy. Development of electronic democracy should be a strategic dimension of Georgian governance. Formation of electronic democracy, its functional improvement should become an important dimension of the state’s information policy. Electronic democracy is based on electronic governance and implies modern information and communication systems, their adaptation to universal standards. E-democracy needs involvement of governments, voters, political parties and social groups in an electronic form. In the last years the process of interaction between the citizen and the state becomes simpler. This process is achieved by the use of modern technological systems which gives to a citizen a possibility to use different public services online. For example, the website my.gov.ge makes interaction between the citizen, business and the state more simple, comfortable and secure. A higher standard of accountability and interaction is being established. Electronic democracy brings new forms of interactions between the state and the citizen: e-engagement – participation of society in state politics via electronic systems; e-consultation – electronic interaction among public officials, citizens and interested groups; e-controllership – electronic rule and control of public expenses and service. Public transparency is one of the milestones of electronic democracy as well as representative democracy as only on mutual trust and accountability can democracy be established. In Georgia, institutional changes concerning establishment and development of electronic democracy are not enough. Effective planning and implementation of a comprehensive and multi component e-democracy program (central, regional, local levels) requires telecommunication systems, institutional (public service, competencies, logical system) and informational (relevant conditions for public involvement) support. Therefore, a systematic project of formation of electronic governance should be developed which will include central, regional, municipal levels and certain aspects of development of instrumental basis for electronic governance.

Keywords: e-democracy, e-governance, e-services, information technology, public administration

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Authors: Jonathan Palatz Cedeño

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The paper will seek to examine the scope and limitations of the process of construction of ordinary and extraordinary migration regulatory tools of the countries of Latin America, due to the Venezuelan diaspora in Ibero-America (2015-2018). The analysis methodology will be based on a systematic presentation of the existing advances in the subject under a qualitative approach, in which the results are detailed. We hold that an important part of the Latin American countries that used to be the emitters of migrants have had to generate, with greater or lesser success both nationally and regionally, ordinary and extraordinary migration regulatory tools to respond to the rapid intensification of the current Venezuelan migratory flows. This fact beyond implementing policies for the reception and integration of this population marks a new moment that represents a huge challenge both for the receiving States and for the young Ibero-American institutional migration system. Therefore, we can say that measures to adopt reception and solidarity policies, despite being supported by organs of the multilateral system such as UNHCR and IOM, are not found as guidelines for national and regional action, at the expense of the reactions of the respective public opinions and the influence of what to do of the neighboring countries in the face of the problem.

Keywords: Venezuela, migration, migration policies and governance, Venezuelan diaspora

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Authors: Hussein El-Zohary

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This research aims at studying the late Alexandrian school of philosophy in the 6th century AD, the adaptation of its methodologies by the Islamic world, and its impact on Muslim philosophical thought. The Alexandrian school has been underestimated by many scholars who regard its production at the end of the classical age as mere interpretations of previous writings and delimit its achievement to the preservation of ancient philosophical heritage. The research reviews the leading figures of the Alexandrian school and its production of philosophical commentaries studying ancient Greek philosophy in its entirety. It also traces the transmission of its heritage to the Islamic world through direct translations into Syriac first and then into Arabic. The research highlights the impact of the Alexandrian commentaries on Muslim recognition of Plato and Aristotle as well as its philosophical teaching methodology starting with the study of Aristotle’s Categories as introductory to understand Plato’s philosophy.

Keywords: Alexandrian school of philosophy, categories, commentaries, Syriac

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Authors: Norazlan Alias, Mohd. Hasimi Yaacob

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This study examines the impact of governance structure via corporate restructuring decision on selected firm characteristics and performance. Results of selected ratios that represent corporate decision, governance structure and performance in pre and post restructuring are analyzed for some conclusions. This study uses annual data of companies that are consistently listed on the Main Board of Bursa Malaysia and announced completed corporate restructuring. The results show that only debt ratio is significantly different before and after asset restructuring. This study concludes that firms do not view corporate restructuring namely asset restructuring as an opportunity to simultaneous enhance governance structure that could also contribute enhance firm performance and board of directors’ structure subsequent to asset restructuring only has significantly influence on changing capital structure but not on firm performance.

Keywords: board of directors, capital structure, corporate restructuring, performance

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Authors: Fahad Ahmed Qureshi

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Is it essential for a Muslim businessperson and employees of Islamic financial institutions not only in Islamic Banks to perform his/her actions ethically in a universally, competing habitat? The answer is an emphatic NO! in Islam, ethics conduct all departments of life. The orders for eternal success or falah in Islam are the same for all Muslims–whether in managing their business activities or in carrying out their routine affairs. Without designating any circumstantial ambience, Allah specify people who achieve success as those who are “inviting to all that is good (Khayr), enjoining what is right (Ma'ruf) and forbidding what is wrong (Munkar).” Within a business context, however, what sole axioms of regimen should a company follow? What is a Muslim businessperson’s encumbrance to internal and external stakeholders? Although an organization’s top executives may display sterling ethical behavior, how can middle- and lower-level managers be enthusiastic to perform in a correspondingly ethical manner? What are some protocols that would clinch persistent ethical behavior in a Muslim business?

Keywords: business, ethics, finance, Islam

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Authors: Rachel Koshy, Nazrila Hairizan Bt. Nasir, Samsiah Bt. Awang, Kamaliah Bt. Mohamad Noh

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Malaysia collaborated as a ‘trailblazer’ country with PHCPI (Primary Health Care Performance Initiative) to populate the Primary Health Care (PHC) Vital Signs Profile (VSP) for the country. The PHC VSP provides an innovative snapshot of the primary health care system's performance. Four domains were assessed: system financing, system capacity, system performance, and system equity, and completed in 2019. There were two phases using a mixed method study design. The first phase involved a quantitative study, utilising existing secondary data from national and international sources. In the case of unavailability of data for any indicators, comparable alternative indicators were used. The second phase was a mixed quantitative-qualitative approach to measure the functional capacity based on governance and leadership, population health needs, inputs, population health management, and facility organisation and management. PHC spending constituted 35% of overall health spending in Malaysia, with a per capita PHC spending of $152. The capacity domain was strong in the three subdomains of governance and leadership, information system, and funds management. The two subdomains of drugs & supplies and facility organisation & management had low scores, but the lowest score was in empanelment of the population under the population health management. The PHC system performed with an access index of 98%, quality index of 84%, and service coverage of 62%. In the equity domain, there was little fluctuation in the coverage of reproductive, maternal, newborn, and child health services by mother’s level of education and under-five child mortality between urban and rural areas. The public sector was stronger in the capacity domain as compared to the private sector. This is due to the different financing, organisational structures, and service delivery mechanism. The VSP has identified areas for improvement in the effort to provide high-quality PHC for the population. The gaps in PHC can be addressed through the system approach and the positioning of public and private primary health care delivery systems.

Keywords: primary health care, health system, system domains, vital signs profile

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Authors: A. R. Nor Azlina, H. Salwana, I. Zuraeda, A. R. Rashidah, O. Normah

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Transitioning towards globalization in the business environment has necessitated more essential growing changes such as competition, business strategy, innovation in technology and effectiveness of societal trends on adopting corporate governance are seen to be drivers of the future. This transformations on business environment has a significant impact to organizations’ performances. Many organizations are demanding for more proactive entrepreneurs with dynamic team, who can run and steer their business to success. Changing on strategy, roles, tasks, entrepreneurial skills and implementing corporate governance in relationship development is important to enhance the organization’s performance towards being more cost-efficient and subsequently increase its efficiency. Small Medium Enterprises (SMEs) in most developing countries are contributors to the economic growth of a nation. However, the potential of Microfinance Institutions (MFIs) is always overlooked in contributing towards SMEs development. The adoption of corporate governance and accountability in MFIs as driving forces for these SMEs is not incorporated in measurements of organization performance. This paper attempts to address some of the governance issues associated with dimensions of accountability in improving performances of microfinance institutions. Qualitative approach was adopted in this study to analyze the data collected. The qualitative approach emerges as contributing factor in understanding and critiquing accountability processes, as well as addressing the concerns of practitioners and policymakers. A close researcher engagement with the field which concerns process, embracing of situational complexity, as well as critical and reflective understandings of organizational phenomena remain as hallmarks of the tradition. It is concluded that in describing and scrutinizing an understanding of managerial behavior, organizational factors and macro-economic relationship in SMEs firm need to be improved. This is also the case in MFIs. A framework is developed to explore the linkage of corporate governance and accountability issues related to entrepreneurship as factors affecting MFIs performances in facing ongoing transformation of organization performance within Malaysian SMEs industries.

Keywords: accountability, corporate governance, microfinance, organization performance

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Authors: Abdus-Samii Imam Arikewuyo

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The human rights phenomenon increasingly gains universal prominence in the contemporary age. This embraces the clamour for a just treatment of individuals in society. The human rights agitation is a global pursuit which virtually gave birth to many national and international human rights organizations. In particular, Nigeria accedes to a number of human rights covenants. Invariably, there are some provisions which are recognized as inalienable rights of man in his society by which his intrinsic worth and dignity are protected by law. Nonetheless, the constituents of human rights differ in various societies. Conversely, Islam, as a complete code of life, guarantees the rights of a man vis-à-vis the rights of others in his environment regardless of place and time. Human rights pressure in Nigeria in recent times prompted proactive steps to address the issue through various legal instruments. Amazingly, the struggle appears to be a rhetorical noise because the human rights violation subsists. This provokes the present research on a comparative study of the Nigerian legal provisions and the Islamic law perspectives on human rights. It is discovered that the first is simply theoretical, while the other contains both the theoretical framework and the practical measures for its enforcement. The study adopts analytical and descriptive methods. It concludes with the assertion that the Islamic law provisions are all-embracing, universal and more efficacious. Hence, it recommends the adoption of the Islamic law approach to human rights issues.

Keywords: human rights, Nigerian legal provisions, shariah law, comparative study, charter

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Authors: Abdulvahab Forati

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Religious intellectualism is the only stream of consciousness in Iran that its religious theories formed Democracy. The theory of Religious intellectualism was utilized in Constitutional Revolution and Islamic Revolution. To instate Democracy in Iran, in compare with West and sunnis, the theory of Religious Intellectualism is being used differently. Unlike Democracy in the west that has started with the concept of Individualism and Natural Rights or in Sunni world that has started with the concept of consultation, it has started in Iran with mima-la-nas-fih (what we don’t have any proof for)or mantaqa-alfiraq-altashri’ (area of vacuum from reason). Shia scholars first acquainted with the concept of Democracy through theories of Sheikh Mortiza Ansari, and later some of his followers, including Akhund-e-khorasani and Mirzaye naeini, regarding Sheikh Ansari’s thoughts, began to analyze its Constitutional system and Democratic elements. But Imam Khomeini, the great founder of Islamic Republic of Iran, with respect to RAKHS (religious permission for having a choice)could make connection between Islam and Democracy. Instead of focusing on Civil contracts, he relied on Sirah Ughala (Tradition) and accepted many of the current conducts, e.g. Democracy and Political Parties and acknowledged the authority (Hujiat) of them even in absence of Infallibles. These two are the most notable experiences of shia political thoughts about Democracy within the last 100 years. In this article, the author tries to explain the second experience in Imam Khomeini’s thoughts and Sirah.

Keywords: Shia school, Islamic revolution, democracy, political order

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Authors: Farida, M. Shehu, Shehu U. R. Aliyu

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Access to finance has been recognized in the literature as one of the major impediments confronting small scale businesses (SSBs). This largely arises due to high lending rate, religious inclinations, collateral, etc. Islamic mode finance operates under Profit and Loss Sharing (PLS) arrangement between a borrower (business owner) and a lender (Islamic bank). This paper empirically assesses the determinants of predisposition of small scale business operators in Fagge local government area, Kano State, Nigeria, towards the PLS. Cross-sectional data from a sample of 291 small scale business operators was analyzed using logit and probit regression models. Empirical results reveal that while awareness and religion inclination positively drive interest towards the PLS, lending rate and collateral work against it. The paper, therefore, strongly recommends more advocacy campaigns and setting up of more Islamic banks in the country to cater for the financing and religious needs of SSBs in the study area.

Keywords: Islamic finance, logit and probit models, profit and loss sharing small scale businesses, finance, commerce

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Authors: Davoud Maleki, Neda Zamani

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The present study aims at exploring the effective accountability model of Islamic Azad University using a qualitative approach of grounded theory. The data of this study were obtained from semi-structured interviews with 25 professors and scholars in Islamic Azad University of Tehran who were selected by theoretical sampling method. In the data analysis, the stepwise method and Strauss and Corbin analytical methods (1992) were used. After identification of the main component (balanced response to stakeholders’ needs) and using it to bring the categories together, expressions and ideas representing the relationships between the main and subcomponents, and finally, the revealed components were categorized into six dimensions of the paradigm model, with the relationships among them, including causal conditions (7 components), main component (balanced response to stakeholders’ needs), strategies (5 components), environmental conditions (5 components), intervention features (4 components), and consequences (3 components). Research findings show an exploratory model for describing the relationships between causal conditions, main components, accountability strategies, environmental conditions, university environmental features, and that consequences.

Keywords: accountability, effectiveness, Islamic Azad University, grounded theory

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Authors: Davoud Maleki, Neda Zamani

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The purpose of this research was to investigate the factors affecting the organizational pathology of knowledge production in Islamic Azad University. The present research method is quantitative. It was a survey type and applied research in terms of its purpose. The statistical population of the present study included all full-time professors of the Islamic Azad Universities in the North, South, East, West and Central regions, including the Islamic Azad Universities of Sari, Isfahan, Kerman, Khorramabad and Shiraz, and their total number was 1389, based on the Cochran formula. 305 people were selected as the sample size by random sampling method. The research tool was a researcher-made questionnaire, whose validity was calculated from the professors' point of view and its reliability was calculated based on Cronbach's alpha and was 0.89. For data analysis, confirmatory factor analysis and structural equations were used with Smart3 Pls software. The findings showed that the variables of strategy, structure and process directly and the variable of strategy explained indirectly through the variables of structure and process 96.8% of the pathology of knowledge production. Also, structure 49.6% and process variable 58.4% explain the pathology of knowledge production. 38% of knowledge production changes related to the direct effect of strategy, 39% of knowledge production changes Related to the effect of structure, 32% of the changes in knowledge production are related to the direct effect of the process, 70.5% of the changes related to the structure are related to the direct effect of the strategy, 36.5% of the changes related to the process are related to the direct effect of the strategy, 46.3 Percentage of process variable changes It is related to the direct effect of the structure. According to the obtained results, it can be acknowledged that the pathology model of knowledge production in Islamic Azad University can be used as an effective model in the pathology of knowledge production and can improve the scientific level of knowledge producers.

Keywords: pathology of knowledge production, strategic issues, process issues, Islamic Azad University

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Authors: Mehry Daraei

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The goal of this study was to survey the components and affective factors on organizational commitment of Islamic Azad university Khoramabad Baranch’s faculty members. The research method was correlation by causal modeling and data were gathered by questionnaire. Statistical society consisted of 147 faculty members in Islamic Azad University Khoramabad Branch and sample size was determined as 106 persons by Morgan’s sample table that were selected by class sampling. Correlation test, T-single group test and path analysis test were used for analysis of data. Data were analyzed by Lisrel software. The results showed that organizational corporate was the most effective element on organizational commitment and organizational corporate, experience work and organizational justice were only in direct relation with organizational commitment. Also, job security had direct and indirect effect on OC. Job security had effect on OC by gender. Gender variable had direct and indirect effect on OC. Gender had effect on OC by organizational corporate. Job opportunities out of university also had direct and indirect effect on OC, which means job opportunities had indirect effect on OC by organizational corporate.

Keywords: organization, commitment, job security, Islamic Azad University

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Authors: Jordan Daud, Satriya Wibawa, Wahyu Wardhana

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In the summer of 2014, the leaders of the Islamic State of Iraq and Syria proclaimed the founding of religious-political system known as the caliphate which titled Islamic State (IS). As Caliph, Abu Bakr Baghdadi advocated Jihad from the Ummah (the Muslim community) to defend the Islamic state from unbelievers. This call for Jihad by IS had encouraged some radical organization in Southeast Asia pledge allegiance to IS and established bases for IS operation in Southeast Asia. This development had increased security concern for possible terrorism action in Southeast Asia, which currently not very active due to counterterrorism efforts from ASEAN member states and its cooperation with the world. This paper firstly tries to draw understanding from Ulema (Muslim cleric) about the conception of caliphate and Jihad based on Quran and Hadith. Secondly, this paper will elaborate counterterrorism efforts from ASEAN countries to prevent radicalization and terrorism act in addressing the call for jihad to establish IS in Southeast Asia. The third, this paper will recommend the role of the social community, especially Ulema, in Southeast Asia to prevent the misunderstanding of Jihad which usually used by terrorist to justify their action. Hopefully, this social community role will decrease the radicalization of Muslim community in Southeast Asia alongside with the counterterrorism efforts to create secure and stable ASEAN community based on shared norm and values.

Keywords: caliphate, jihad, ASEAN, counterterrorism, social community

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Authors: Synthia A. Sari

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The transparent nomination and selection process is the first step to obtaining qualified members of board. It is believed as the representative (agent) of the owners, members of the board must consist of competent and professional people. However, the development of transparent and ideal nomination and selection process in Indonesian State-owned enterprises (SOEs) has been based on relatively little research. Considering the relative importance attached by boards to conduct their roles in their principal’s interest in a variety of governance tasks in state-owned enterprises, the primary aim of this paper is to shed light on the extent of nomination and selection process impact performance of the board in implementing good corporate governance in Indonesian SOEs. The exploratory nature of this study led to the adoption of a qualitative research methodology which uses semi-structured interviews and publically available documents to collect a range of data pertaining board nomination and selection and the work of boards. Interviews were conducted with four informants from three Indonesian SOEs and Ministry of SOEs. Findings in this study demonstrate unclear job description and expectations board members as a result of unclear functions of the board in Indonesian SOEs make transparent and accountable nomination and selection process hard to conduct. This situation is vulnerable to the influences from political interest and that even the process itself can degenerate into situations of political interference. In the end, it leads to choosing the wrong person for membership of the board. This study makes a significant contribution to several fields; the human resource management, corporate governance, and Southeast studies by addressing the basic research gaps of board selection process issues in Indonesian SOEs. The gap is addressed by providing a more coherent framework for effective nomination and selection system which reflects more clearly the real experiences of those actually involved at board level.

Keywords: board selection and nomination process, Indonesian stated-owned enterprises, good corporate governance, political influence

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Authors: Zineb Meniaoui, Fatma Zehri, Kamoussi Halioui

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The amplified awareness of companies towards the social and environmental concerns has nowadays become a challenge for firms around the globe. Our study investigates the effects of corporate governance mechanisms on voluntarily social and environmental information disclosure in Canada and France. The study use the content analysis approach, applied on a total of 245 year-observation for the Canadian sample and 245 year-observation for the French sample from 2005 to 2011. Our results show a significant correlation between the board's independence, Corporate Social Responsibility (CSR) committee and expertise as well as the audit quality along with the extent of the social and environmental disclosure. The French firms are found disclosing more societal information than Canadian firms, which might be due to the stakeholders' pressure put on French companies to disclose such societal information.

Keywords: Canada, corporate governance, disclosure determinants , France, social and environmental disclosure

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Authors: Sana Tahzeeb

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Role of Muslim minority in a democratic state has been the most debatable as well as attractive issue in the writings of the contemporary Muslim scholars, never discussed in the classical Islamic literature of history. Islam as a dominant religion has been the issue of academic discussions in the entire classical literature of Islamic jurisprudence the division of world into Dar al-Islam (abode of Islam), Dar al-Harb (abode of war) has been the main division on the basis of which Islam’s relation with the remaining world were defined and formulated. Now living in a global society the classical division of territories seems to be irrelevant. The new division of the same became necessary in the present situation particularly in view of the pluralistic society and need of power sharing in non-Muslim countries. It is important to note that a number of Muslim scholars of modern period examined this problem and other issues of Muslim minorities from legal point of view. Fiqh al-Aqalliyat is a newly developed discipline of Islamic jurisprudence. The rationale for this development is that there are so many issues of the Muslim minorities particularly in the European countries which are required to be discussed and examined juridically by Muslim jurists and scholars. There was also need for reinterpreting the term Dar al-Harb and relevance of its applicability to the west. The present paper shed a light on these emerging trends in Islamic world.

Keywords: fiqh al Aqalliyat, Muslim minorities, Europe, Islam

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Authors: Opemiposi Adegbulu

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The research investigates the existence of a public interest consideration or rationale for the management of directors’ conflicts of interest within large public corporations. This is conducted through extensive literature review and theories on the definition of conflicts of interest, the firm and purposes of the fiduciary duty of loyalty under which the management of these conflicts of interest find their foundation. Conflicts of interest is an elusive, diverse and engaging subject, a cross-cutting problem of governance which involves all levels of governance, ranging from local to global, public to corporate or financial sectors. It is a common issue that affects corporate governance and corporate culture, having a negative impact on the reputation of corporations and their trustworthiness. It is clear that addressing this issue is imperative for good governance of corporations as they are increasingly becoming and are powerful global economies with significant power and influence in the society. Similarly, the bargaining power of these powerful corporations has been recognised by international organisations such as the UN and the OECD. This is made evident by the increasing calls and push for greater responsibility of these corporations for environmental and social disasters caused by their corporate activities and their impact in various parts of the world. Equally, in the US, the Sarbanes-Oxley Act like other legislation and regulatory efforts made to manage conflicts of interest linked to corporate governance, in many countries indicates that there is a (global) public interest in the maintenance of the orderly functioning of commerce. Consequently, the governance of these corporations is tremendously pivotal to the society as it touches upon a key aspect of the good functioning of society. This is because corporations, particularly large international corporations can be said to be the plumbing of the global economy. This study will employ theoretical, doctrinal and comparative methods. The research will make use largely of theory-guided methodology and theoretical framework – theories of the firm, public interest, regulation, conflicts of interest in general, directors’ conflicts of interest and corporate governance. Although, the research is intended to be narrowed down to the topic of conflicts of interest in corporate governance, the subject of company directors’ duty of loyalty and the management of conflicts of interest, an examination of the history, origin and typology of conflicts of interest in general will be carried out in order to identify some specific challenges to understanding and identifying these conflicts of interest; origin, diverging theories, psychological barrier to definition, similarities with public sector conflicts of interest due to the notions of corrosion of trust, the effect on decision-making and judgment, “being in a particular kind of situation”, etc. The result of this research will be useful and relevant in the identification of the rationale for the management of directors’ conflicts of interest, contributing to the understanding of conflicts of interest in the private sector and the significance of public interest in corporate governance of large corporations.

Keywords: conflicts of interest, corporate governance, corporate law, directors duty of loyalty, public interest

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Authors: Zahra Ahmed Al-zadjali

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The influence of Islam on arts can be found primarily in calligraphy, arabesque designs and architecture. Also, geometric designs were used quite extensively. Muslim craftsmen produced stunning designs based on simple geometric principles and traditional motifs which were used to decorate many surfaces. The idea of interlacing simple rectilinear lines to form the patterns impressed Arabs. Nomads of Persia, Turks and Mongols were equally impressed with the designs so they begin to use them in their homes in carpet weaving. Islamic designs, motifs and colours which were used became common place and served to influence people’s tastes. Modern life style and contemporary products have changed the style of people’s daily lives, however, people still long for the nomadic way of life. This is clearly reflected in people’s homes. In a great many Muslim homes, Islamic decorative motifs can be seen along with traditional ‘Bedouin’ style furnishing, especially in homes of the Arabian Peninsula.

Keywords: art, craft, design, Oman, weaving

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Authors: Zakaria S. G. Hegazy, Walid M. A. Ahmed

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This paper examines the dependence structure of Islamic stock markets on Bitcoin’s realized volatility components in bear, normal, and bull market periods. A quantile regression approach is employed, after adjusting raw returns with respect to a broad set of relevant global factors and accounting for structural breaks in the data. The results reveal that upside volatility tends to exert negative influences on Islamic developed-market returns more in bear than in bull market conditions, while downside volatility positively affects returns during bear and bull conditions. For emerging markets, we find that the upside (downside) component exerts lagged negative (positive) effects on returns in bear (all) market regimes. By and large, the dependence structures turn out to be asymmetric. Our evidence provides essential implications for investors.

Keywords: cryptocurrency markets, bitcoin, realized volatility measures, asymmetry, quantile regression

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Authors: Lojaine Okacha

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In the past half-century, researchers started paying attention to enhancing the performance of urban spaces. Their idea of performance comprised urban climate performance, space synthesis, economic performance, and enhancing the quality of life in space. However, they all agreed that the key to achieving any of the previously mentioned development projects is good governance. Having good governance allows citizens to participate freely in the urbanization or development projects within cities. Consequently, using the city resources and assets as efficiently as possible, and ensures the fulfillment of the users’ needs and requests. This paper aims to propose an effective participation framework to help citizens have their voices heard and participate in the decisions that will affect their living situation. The framework allows governments to use their public resources to their best. However, this study focuses on public participation in third-world countries with unitary decentralized governance systems such as Egypt. It summarizes the challenges facing the participation practices, identifies the keys to a successful participation process, and draws on dominant effective participation practice lying on the relationship between the levels of participation, stakeholders participating, the urban development stages, the city-systems, and participation process. These components are integrated to create a real-world effective participation Framework. The results of the analysis were incredible and produced a functional and progressive approach for effective public participation to introduce to the governments. The model itself is combined with additional principles allowing the best practice to the process. The framework is finally compared with a real case of urban development.

Keywords: public participation, good governance, urban development, city systems

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Authors: Lajmi Azhaar, Yab Mdallelah

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This study examines the Tunisian market in which recent events, notably financial scandals, provide an appropriate framework for studying the impact of corporate governance on the audit report lag. Moreover, very little research has been done to examine this relationship in this context. The objective of this work is, therefore, to understand the factors influencing audit report lag, drawing primarily on agency theory (Jensen and Meckling, 1976), which shows that the characteristics of the board of directors have an impact on the report lag (independence, diligence, and size). In addition, the characteristics of the committee also have an impact on the audit report lag (size, independence, diligence, and expertise). Therefore, our research provides empirical evidence on the impact of governance mechanisms attributes on audit report lag. Using a sample of forty-seven (47) Tunisian companies listed on the Tunis Stock Exchange (BVMT) during the period from 2014 to 2019, and basing on the GMM method of the dynamic panel, multivariate analysis shows that most corporate governance attributes have a significant effect on audit report lag. Specifically, the audit committee diligence and the audit committee expertise have a significant and positive effect on audit report lag. But the diligence of the board has a significant and negative effect on audit report lag. However, this study finds no evidence that the audit committee independence, the size, independence, and diligence of the director’s board are associated with the audit report lag. In addition, the results of this study also show that there is a significant effect of some control variables. Finally, we are contributing to this study by using the GMM method of the dynamic panel. We are also using an emerging context that is very poorly developed and exploited by previous studies.

Keywords: governance mechanisms, audit committee, board of directors, audit report lag

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Authors: John Kong Shan Ho

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Senior executives’ remunerations of public companies have aroused much debate and attention in the media. In the aftermath of the Global Financial Crisis (GFC), excessive executive pay arrangements were blamed for contributing to excessive risk-taking, which caused the financial meltdown. Since then, regulators and lawmakers around the world have introduced regulations to strengthen the corporate governance of listed companies. A key aspect of such reform is by strengthening regulatory intervention over executives’ remunerations and increasing the transparency of such information. This article is written against such background and examines the recent proposal by the UK BEIS to ask the FRC to amend the UK Corporate Governance Code (UKCGC) to strengthen clawback provisions for directors’ remuneration in listed companies as part of its audit reform. The article examines the background and debates regarding the possible implementation of such a measure in the UK. Contrary to the BEIS’ proposal, it argues that implementing it through the UKCGC is unlikely to enhance overall corporate governance and audit quality. It argues that the UK should follow the footsteps of its US and Dutch counterparts by enacting legislation to claw back directors’ remunerations. It will also provide some recommendations as to the key factors that need to be considered in drafting such a statutory provision.

Keywords: company law, corporate governance, agency problem, directors' remunerations, clawbacks

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Authors: Zuwaira Abubakar

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Islam is the Divine religion which guides Man ways of leading a prosperous life in this life and the hereafter. This study was conducted in order to investigate the possible relationship between adherence to Islamic principles of success and academic performance of university students. Accordingly, a questionnaire based on Islamized principles of success (referred to as 'Islamic character quotient inventory (ICQi)') was correlated with CGPA (Cumulative Grade Point Averages) of 343 students of Usmanu Danfodiyo University Sokoto. The empirical testing indicates that the total score on ICQi correlated positively and significantly with academic performance of the respondent. Students with either high or medium adherence have a significantly (P<0.01) higher CGPA than their counterparts with the low-adherence level. However, the result did not show a significant relationship between the CGPA of highly adherent individuals and that of those with medium adherence level. This may suggests that Islam is not for spiritual life only but also relevant and useful for our practical life.

Keywords: academic, Islam, principles, success

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Authors: Khaled Alkadamani

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Using the simultaneous equations model, this paper examines the impact of capital requirements on bank risk-taking during the recent financial crisis. It also explores the relationship between capital and risk decisions and the impact of economic instability on this relationship. By analyzing the data of 20 Islamic commercial banks between 2004 and 2014 from four Middle East countries, the study concludes a positive effect of regulatory pressure on bank capital in Saudi Arabia and UAE and a negative effect in Jordan and Kuwait. Moreover, the results show a negative impact of regulatory pressure on bank risk taking in Saudi Arabia, Jordan and UAE. The findings reveal also that banks close to the minimum regulatory capital requirements improve their capital adequacy by increasing their capital and decreasing their risk taking. Furthermore, the results show that economic crisis negatively affects bank risk changes, suggesting that banks react to the impact of uncertainty by reducing their risk taking. Finally, the estimations show a negative correlation between banks profitability and capital adequacy ratio (CAR), implying that as more capital is set aside as a buffer for banks safety; it affects the performance of Islamic banks.

Keywords: bank capital, bank regulation, crisis, Islamic banks, risk taking

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Authors: Mozamil Mohamed Ali

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Understanding the relationship between law and democratic governance, this research, titled “The Role of Law in Enhancing Democratic Governance: A Comparative Study of Political Systems in Developing Countries,” focuses on examining the impact of legal frameworks on strengthening democratic practices within developing nations. Democratic governance requires transparency and institutional accountability to meet citizens’ needs, which necessitates legal frameworks that ensure compliance with governance standards. These frameworks hold greater significance in developing countries, where challenges such as corruption, weak public institutions, and socio-political conflicts affect their ability to achieve sustainable democratic governance. In this context, the research explores how laws influence these aspects. The study compares various developing countries that have experienced different levels of success and difficulty in enhancing democratic governance, focusing on the legal frameworks and public policies each country has implemented to improve transparency, accountability, and strengthen the role of public institutions. This comparative analysis aims to reveal the effectiveness of legal systems in supporting democratic governance and to identify the factors that lead to the success or failure of these legal frameworks in different contexts. For example, the study includes cases from countries in Asia, Africa, and Latin America, analyzing the legal and institutional policies and their roles in achieving justice and reducing corruption. It examines the impact of legislation that promotes freedom of the press, human rights, and judicial independence as fundamental elements for transparent and democratic governance. Additionally, the research discusses how anti-corruption policies and laws governing electoral competition contribute to improving government responsiveness to public demands. The hypothesis of the research centers on the idea that developing transparent and fair laws contributes to achieving sustainable democratic governance. The analyses show that applying laws equally and impartially strengthens citizens’ trust in public institutions and encourages political participation. At the same time, the research highlights the importance of local adaptation to global legal frameworks, as it may be necessary to consider local socio-political and economic contexts to ensure the success of these frameworks. In conclusion, this research underscores the importance of legal frameworks as a pivotal factor in the success of democratic governance. It provides recommendations related to enhancing judicial independence, enforcing anti-corruption laws, and improving access to information as essential steps for strengthening democratic governance in developing countries. The findings suggest that laws respected and carefully implemented can form a solid foundation for building more transparent and effective government institutions, contributing to sustainable development and social justice in these nations.

Keywords: impact of legislation, role of institutions in controlling power, community participation, role of the judiciary

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Authors: Gabriel Adegbite

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Corruption has become one of the most notoriously persistent and progressively worsening social problems afflicting most of the African states. It has permeated virtually all institutions and has become a way of life and principal method of accumulating wealth on the continent. While major cause of this pandemic has been traced to the post-colonial antecedents of many African leaders, some highlights during the colonial era have shown that activities during the period gave impetus for its entrenchment. There is also a growing study establishing an intersection between corruption and governance. However, any comprehensive analysis of factors responsible for the emergence and entrenchment of corruption in Africa must take a holistic view of the practice. It must examine the role played by colonialism and neo-colonialism in African countries. This study presents few elements and historical view of corruption in sub-Sahara Africa. It analyse the reason for corruption eruption in most of the African states while suggesting some anti-corruption strategy that may be peculiar to the continent. This study makes a contribution to the growing literature in the area of corruption and panacea in developing countries.

Keywords: Africa, fighting corruption, antidote, governance

Procedia PDF Downloads 378