Perception of stakeholders on governance dimensions of the Islamic banking sector
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 6 March 2019
Issue publication date: 20 September 2019
Abstract
Purpose
The perception of different stakeholder groups on governance dimensions, such as transparency, accountability and ethics, in the Islamic banking sector is examined, given the global growth of Islamic banking and its purpose of enhancing economic growth and development through Shari’ah-compliant instruments. The purpose of this paper is to determine whether the stakeholders in Nigeria perceive each dimension differently.
Design/methodology/approach
The data for the study were collected using a survey questionnaire. Simple random sampling was used to select the respondents. The respondents are customers, employees and shareholders of the Islamic banking sector in Nigeria.
Findings
Findings show that ethics is highly perceived as the key dimension in governance for the Islamic banking sector, whilst a positive and significant relationship is observed between the variables. Based on the variance analysis, there were statistically significant differences in perception between the stakeholders groups in the Islamic banking system. However, similar positive perceptions are accorded towards the overall governance dimensions across stakeholder groups namely, customers, employees and shareholders.
Originality/value
This study will extend the current body of knowledge in the field of Islamic finance by providing insights into policy makers, operators and regulators of the Islamic banking sector in Nigeria on the prospective stakeholders’ level of perception of the governance dimension, which could form part of the solutions to many contemporary issues in the banking system. This contribution is important, considering the clear relationship among governance dimensions which should be viewed in light of Islamic ideals.
Keywords
Acknowledgements
The authors express their profound gratitude to the respondents who participated in this study. Also, the sponsorship granted by the Accounting Research Institute (ARI), Universiti Teknologi MARA, Shah Alam, is well acknowledged and appreciated.
Citation
Oladapo, I.A., Arshad, R., Muda, R. and Hamoudah, M.M. (2019), "Perception of stakeholders on governance dimensions of the Islamic banking sector", International Journal of Emerging Markets, Vol. 14 No. 4, pp. 601-619. https://doi.org/10.1108/IJOEM-12-2017-0510
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited