The Islamic critical theory view of corporate governance practices and performance of Islamic financial institutions

Abstract

Despite the importance and applicability of corporate governance practices in both conventional and Islamic financial institutions, the literature indicates very few studies have attempted to investigate the effect of corporate governance practice on the performance of Islamic financial institutions, specifically base on the Islamic critical theory view. The literature reveals that there
is not only limited information on corporate governance practice of Islamic financial institutions (IFIs) but also little research in this important area. Drawing from the review of the literature and past studies based on Quran and Sunnah. The methodology employed in this study is basically content analysis. There is the need to assess the IFIs’ competencies in the practices for future study. This will allow them to not only improve their organizational performance but also sustain their financial viability as well as competitive advantage.