Open AccessContribution of Governance to Ensure the Stability of Islamic Banks: A Panel Data Analysis
Author(s) -
Bakkeri Amine
Publication year - 2018
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v8i3.13333
Subject(s) - islam , panel data , accounting , corporate governance , remuneration , business , competence (human resources) , transparency (behavior) , financial stability , audit , audit committee , financial system , economics , finance , political science , management , law , philosophy , theology , econometrics
The succession of crises imposed the need to establish the «Governance best practice ». This article tries to illustrate empirically the contribution of the mechanisms of the governance to ensure the stability of Islamic Financial Institutions. Using Zscore as a stability and solidity of IFI, our study focus on one sample of 30 Islamic banks taking place in 16 countries in North Africa and the Middle East shows that the size and the independence of the Board, the competence of the audit committee and the remuneration constitute the mechanisms helping to insure the stability of Islamic Financial Institutions. The duality seems to affect negatively the stability of the Islamic banks.