Corporate Governance and Financial Performance

This book focuses on the relationship between corporate governance and business performance with a particular emphasis on financial institutions and Islamic banks. It began with a survey of corporate governance as a concept exploring the situations where it is most likely to occur. The literature on corporate governance and the various theories and empirical evidence in this area were critically reviewed. There is sporadic evidence of a positive relationship between corporate governance and firm performance in a variety of circumstances and countries. However, the research review showed that studies measuring this relationship in the banking sector are rather scarce. In an effort to fill this gap in the literature, this research embarked on an empirical study to determine whether there is a relationship between corporate governance and the performance of Islamic financial institutions. The approach is to study this relationship for the case of Malaysian Islamic banks.