Int. J. Business Excellence, Vol. 19, No. 2, 2019 243
Copyright © 2019 Inderscience Enterprises Ltd.
Islamic finance and corporate governance:
a proposed universal model
Mohd Sarim, Areeba Khan and Asif Akhtar
Department of Business Administration,
Aligarh Muslim University,
P.O. Box 202002, Aligarh, India
Email: mohdsarim.amu@gmail.com
Email: khanareeba.rs@gmail.com
Email: asifakh@gmail.com
Mosab I. Tabash*
College of Business,
Al Ain University of Science and Technology,
P.O. Box 64141, Al Ain, UAE
Email: Mosab.tabash@aau.ac.ae
*Corresponding author
Abstract: The purpose of this paper is to systematically synchronise the
development of Shari’ah governance in light of the Islamic epistemology. The
paper explores governance from the Islamic point of view by referring to
various verses from the Holy Qur’an. Also, the paper enumerates the Ps of
Islamic governance through shedding light on the teachings of the Holy Qur’an.
An in-depth literature review is done to identify the enablers of Shari’ah
corporate governance model. Furthermore, interpretative structure modelling
(ISM) is applied to propose a Shari’ah governance model for all Islamic
countries and countries that follow Islamic banking system. The key variables
are identified with the help of MICMAC analysis. The results reveal that there
are various conflicting issues that exist among business operations of Islamic
financial industry. One of the issues is lacking uniformity regarding
considerations related to Halal/Haram transactions. The paper suggests a
suitable model for implementing Shari’ah governance and making it globally
acceptable.
Keywords: Islamic finance; governance; Qur’an; 4Ps; Islamic; AAOIFI
standards; interpretative structure modelling; MICMAC analysis; Muslim
countries; global level; Halal/Haram transactions.
Reference to this paper should be made as follows: Sarim, M., Khan, A.,
Akhtar, A. and Tabash, M.I. (2019) ‘Islamic finance and corporate governance:
a proposed universal model’, Int. J. Business Excellence, Vol. 19, No. 2,
pp.243–266.
Biographical notes: Mohd Sarim is currently working as a Research Scholar in
the Department of Business Administration, Aligarh Muslim University, India.
He is working in the area of corporate governance and finance. His research
work mainly focuses on governance dimensions and its impact on financial
aspects of the firm.