Islamic Corporate Governance

Abstract

The influence of Islamic corporate governance continues to increase among the global firms. Nonetheless, the main implication is on whether this type of governance helps in ensuring quality company performance in the national and international markets. Therefore, the aim of this study is to assess whether the factors influencing corporate governance promote good company performance for the companies operating under the Islamic label. Therefore, company performance is considered as the only dependent variable whilst corporate governance was measured in terms of the ratio of independent directors as well as the women in the board of directors. This quantitative study was conducted based on a sample of 73 firms found in Saudi Arabia. The considered analysis period falls from 2009 to 2019. Based on the conducted analysis, the main finding was that corporate performance is not affected by Islamic governance in terms of the type of directors found in a company. Instead, the amount of shareholders significantly affects the type of performance in the organisation.