This paper examines the organizational forms of Islamic banks, corporate governance mechanism, and their effects on organizational behavior, specifically related to managerial expense preferences. The paper opted for ...This paper examines the organizational forms of Islamic banks, corporate governance mechanism, and their effects on organizational behavior, specifically related to managerial expense preferences. The paper opted for an ordinary least square （OLS） cluster regression and followed by a stochastic frontier approach test as a robustness test. Findings of this study indicate that organizational forms of Islamic banks influence managerial expense preferences. A stochastic frontier approach test supports the initial findings and reveals that the average noninterest cost inefficiency of Islamic banks without Shari＇ah Boards is 23% compared to commercial banks. Islamic banks with Shari＇ah Boards are, on average, 28% less noninterest cost inefficient compared to Islamic banks without Shari＇ah Boards, and are on average, 16% less noninterest cost inefficient compared to commercial banks. Shari＇ah Supervisory Boards＇ positive implications for Islamic banks are independent of the expectations of the governing structure or ownership. Specifically when looking at Islamic banks with Shari＇ah Supervisory Boards, managerial propensity to engage in self-serving behavior is reduced. This paper fulfils an identified need to understand how the distinct nature of Islamic banks organizational forms and governance impact managerial behaviour.展开更多
In terms of accounting, all types of business enterprises regardless of their organizational form are separate accounting entities. But different types of organization forms entail remarkable differences in the establ...In terms of accounting, all types of business enterprises regardless of their organizational form are separate accounting entities. But different types of organization forms entail remarkable differences in the establishments, legal positions, 1iabilities, taxation obligations and accounting practices of the business enterprises as accounting entities. A good knowledge of such difference is beneficial to the promotion of the deveIopment of all types of business enterprises in China.展开更多
文摘This paper examines the organizational forms of Islamic banks, corporate governance mechanism, and their effects on organizational behavior, specifically related to managerial expense preferences. The paper opted for an ordinary least square （OLS） cluster regression and followed by a stochastic frontier approach test as a robustness test. Findings of this study indicate that organizational forms of Islamic banks influence managerial expense preferences. A stochastic frontier approach test supports the initial findings and reveals that the average noninterest cost inefficiency of Islamic banks without Shari＇ah Boards is 23% compared to commercial banks. Islamic banks with Shari＇ah Boards are, on average, 28% less noninterest cost inefficient compared to Islamic banks without Shari＇ah Boards, and are on average, 16% less noninterest cost inefficient compared to commercial banks. Shari＇ah Supervisory Boards＇ positive implications for Islamic banks are independent of the expectations of the governing structure or ownership. Specifically when looking at Islamic banks with Shari＇ah Supervisory Boards, managerial propensity to engage in self-serving behavior is reduced. This paper fulfils an identified need to understand how the distinct nature of Islamic banks organizational forms and governance impact managerial behaviour.
文摘In terms of accounting, all types of business enterprises regardless of their organizational form are separate accounting entities. But different types of organization forms entail remarkable differences in the establishments, legal positions, 1iabilities, taxation obligations and accounting practices of the business enterprises as accounting entities. A good knowledge of such difference is beneficial to the promotion of the deveIopment of all types of business enterprises in China.
