Title: Islamic finance and corporate governance: a proposed universal model

Authors: Mohd Sarim; Areeba Khan; Asif Akhtar; Mosab I. Tabash

Addresses: Department of Business Administration, Aligarh Muslim University, P.O. Box 202002, Aligarh, India ' Department of Business Administration, Aligarh Muslim University, P.O. Box 202002, Aligarh, India ' Department of Business Administration, Aligarh Muslim University, P.O. Box 202002, Aligarh, India ' College of Business, Al Ain University of Science and Technology, P.O. Box 64141, Al Ain, UAE

Abstract: The purpose of this paper is to systematically synchronise the development of Shari'ah governance in light of the Islamic epistemology. The paper explores governance from the Islamic point of view by referring to various verses from the Holy Qur'an. Also, the paper enumerates the Ps of Islamic governance through shedding light on the teachings of the Holy Qur'an. An in-depth literature review is done to identify the enablers of Shari'ah corporate governance model. Furthermore, interpretative structure modelling (ISM) is applied to propose a Shari'ah governance model for all Islamic countries and countries that follow Islamic banking system. The key variables are identified with the help of MICMAC analysis. The results reveal that there are various conflicting issues that exist among business operations of Islamic financial industry. One of the issues is lacking uniformity regarding considerations related to Halal/Haram transactions. The paper suggests a suitable model for implementing Shari'ah governance and making it globally acceptable.

Keywords: Islamic finance; governance; Qur'an; 4Ps; Islamic; AAOIFI standards; interpretative structure modelling; MICMAC analysis; Muslim countries; global level; Halal/Haram transactions.

DOI: 10.1504/IJBEX.2019.102237

International Journal of Business Excellence, 2019 Vol.19 No.2, pp.243 - 266

Received: 29 Mar 2018
Accepted: 06 Jul 2018
Published online: 12 Sep 2019 *

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