Corporate governance, shariah supervision and Islamic bank performance: Malaysian scenario

This study is undertaken to identify the corporate and Shariah governance in affecting local Islamic Banks performance in Malaysia. This study is using local Islamic banks performance as the dependent variable. Independent variable used in this study are board size, board independence, insider ownership and Shariah supervision while bank size was adopted as a control variable. To achieve the general objective of this study, the data employed in this study is from 2013 until 2018 from 11 local Islamic banks in Malaysia. The main technique that we used is panel data regression (fixed effect). The finding of this study indicated that board size, board independence and insider ownership was not significant in the relationship between corporate governance and Islamic banks performance. Also, Shariah supervision was found insignificant in the relationship between Shariah governance and Islamic banks performance. The result in this study reported is useful to both industry and academics by providing relevant recommendation and suggestions on how to improve corporate and Shariah governance in Islamic banks.