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The most crucial challenge facing Islamic Financial Institutions (IFIs) is the full compliance of their activities with shari'ah principles. The complexity of IFIs requires Otoritas Jasa Keuangan (OJK, Indonesian Financial Services Authority) to adopt a good shari'ah governance framework to address shari'ah risks of Islamic banking and financial institutions (IBFIs). However, the current shari'ah governance structure in Indonesia is far from ideal compared to the international best practice. This chapter proposes a new shari'ah governance framework by involving shari'ah supervisory board authority (Otoritas Dewan Pengawas Syariah) under the commissioners of OJK to oversight, regulate, and supervise the shari'ah matters for IBFIs in Indonesia. The chapter discusses the challenges in adopting this new framework. The chapter concludes that the current shortcomings of the proper shari'ah governance framework for shari'ah supervision and regulation requires a new shari'ah board authority under the commissioners of OJK who has full authority over shari'ah matters.

This chapter focuses on testing optimal capital structure theory: The role of intervening variable debt to equity ratio (DER) on the influence of the financial performance, Ownership Structure of Independent Board of Commissioners (IBCO), Audit Committee (ACO), and Institutional Ownership on Firm Value. The research design was explanatory research using path analysis. Using purposive sampling, 61 manufacturing companies, observation period from 2014 to 2018 with 286 N samples. The research novelty empirically can prove the role of intervening variable DER on the effect of return on assets (ROA) on firm value and shows the market response to the ROA is fully reflected by DER, indicating the existence of an optimal capital structure. The role of DER on the effect of ROE and IBCO on firm value is a partial mediation with the inverse direction. This phenomenon shows that the mechanism of forming a balance between the responses of investors and creditors relates to debt financing.

This chapter investigates the effect of financial performance and corporate governance on market performance, using evidence from the companies listed on the IDX30 Index of the Indonesia Stock Exchange (IDX) from 2015 to 2018. The authors use six main independent variables and one dependent variable, controlled by using control variables in the regression analysis. Ordinary least square (OLS) regression methods are used to model the relationship between the dependent variable and the independent variables. The results show that the current ratio (CR) and Board Size (BS) have a significant negative effect on stock return (SR). In contrast, the quick ratio (QR) and debt to equity ratio (DER) have a significant positive impact on SR. Both the debt to asset ratio (DAR) and Independent Board of Commissioners (BOC) have an insignificant effect on SR. This evidence suggests that the CR, QR, DER, and BS are essential factors affecting SR.

This chapter provides in-depth case studies of two large urban public libraries in the United States and how communities and libraries respond to reductions mandated by their funding agencies. Boston Public Library (BPL) and Los Angeles Public Library (LAPL) are both in communities that faced, and are still facing, recessionary budget pressures that began in 2007. Each community and library system has responded in different ways. In the recent past, in both Boston and Los Angeles, the Mayors and City Councils have supported libraries that have come to define the great cultural heritage and heart of these cities in the past. In 2010, however, both cities faced unheard of budget pressures. In Boston, there was a budget shortfall of $3.6 million. In Los Angeles, the budget shortfall began in 2007 due to huge increases in pension payments to city workers, particularly in the police and fire departments (City of Los Angeles Web site, 2011). In Boston, the community was told there could be branch closures. In Los Angeles, the budget shortfall created severe personnel, material, and service cuts. How each library and their leaders responded to those challenges differed. The level of support that their communities provided and the manner in which it was provided also differed. The two cases describe what can happen when budget crises occur and how libraries and their communities deal, or do not deal with them. The cases also reflect how the two library systems serve metropolitan areas with very distinct characteristics.

A statutory board is one of the three forms of public enterprise in Singapore which are involved directly or indirectly in economic development. Tan Chwee Huat has defined a statutory board as “an autonomous government agency set up by special legislation to perform specific functions (Tan, 1974, p. 102).” Similarly, Lee Boon Hiok has referred to statutory boards as “a catchall phrase for the statutory bodies which have been established by an Act of Parliament,” which specifies their rationale as well as their rights and powers (Lee, 1975, pp. 38–39).

The unique characteristic of Islamic bank leads in governance and disclosure. Using stakeholder, signaling, and market discipline theory, governance and adequate disclosure may increase bank soundness. This study aims to investigate the relationship of sharia disclosure and Sharia Supervisory Board in influencing Islamic bank soundness in the different regulatory framework of the country. Using purposive sampling, the research covered 84 Islamic banks in 16 countries during the period 2013–2015 with lag data of Islamic bank soundness. The result shows sharia disclosure influences on Islamic bank soundness for management efficiency, capital adequacy ratio, asset quality, and liquidity. The results also show that sharia disclosure mediates the indirect effect of SSB on Islamic bank soundness. The regulatory framework (sharia accounting standard and SSB regulation) shows moderating effect of regulation framework proved on the association of sharia disclosure with management efficiency, capital, and liquidity. The effect is indirectly depending on the regulatory framework for proxy management efficiency, capital, and liquidity. The implication of the research suggests that sharia disclosure could increase the market discipline mechanism of Islamic bank stream. The Islamic bank can increase the transparency using sharia disclosure as a branding for increasing public trust, even though in the deficient Islamic bank regulation countries.