Volume 20 No. 3, December 2021
ARTICLE INFO
Article History:
Received: 17 May 2021
Accepted: 22 August 2021
Available online: 01 December 2021
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 20 NO 3, DECEMBER 2021
https://doi.org/10.24191/MAR.V20i03-03
https://doi.org/10.24191/MAR.V20i03-03
Board of Directors, Shariah Committees and Sustainability Commitment of Islamic Banks in Malaysia
Siti Nurain Muhmad♣, Akmalia M. Ariff, Norakma Abd Majid and Ahmad Firdhauz Zainul Abidin
Faculty of Business, Economics and Social Development,
Universiti Malaysia Terengganu, Malaysia
ABSTRACT
This study examined the relationship between board of directors, Shariah committee and sustainability commitment of Islamic banks in Malaysia. Analyses were performed on a sample of 16 Islamic banks in Malaysia from 2017 to 2018, consisting of 11 local and 5 foreign banks. Regression analyses involved characteristics of the board of directors and Shariah committees as the independent variables and sustainability commitment as the dependent variable. Three corporate characteristics (board size, women on the board and Shariah committee) proxy for strategic leadership, while sustainability commitment was based on the framework of the Sustainable Development Goals consisting of economic, social, and environmental dimensions. The results showed that board size was not associated, while women on the board was negatively associated, with the banks’ sustainability commitment. Additionally, the Islamic banks with a larger number of members in the Shariah committee had greater sustainability commitment compared to their counterparts. Thus, this study confirms that Shariah committee as an essential factor in achieving the Islamic banks’ sustainability commitment goals. The findings suggest more concerted efforts to embed strategic leadership from the top to achieve appropriate levels of effectiveness that can reflect better responses to sustainability commitment issues.
KEYWORDS: Board of Directors, Shariah Committee, Sustainability Commitment, Islamic Banking, Sustainable Banking
KEYWORDS: Board of Directors, Shariah Committee, Sustainability Commitment, Islamic Banking, Sustainable Banking
♣Corresponding Author: Siti Nurain Muhmad, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, Malaysia; This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel: +609-6684849