CRITICAL STUDY OF OPTIMIZATION OF ISLAMIC CORPORATE GOVERNANCE IMPLEMENTATION TO ACHIEVE COMPANY PERFORMANCE

Reza Widhar Pahlevi

Abstract


Guidelines for Good Corporate Governance an Islamic perspective have a broader context, do not
separate roles and responsibilities in all stakeholders actions under the auspices of Islamic sharia law.
There are differences in concepts and perspectives between western perspective (Anglo Saxon and
European) Good Corporate Governanceand Islamic perspectives. The difference in the very basic point
of view that Good Corporate Governance is the Islamic perspective comes from tawhid, shari'ah, and
the concept of shura. Islamic Good Corporate Governance guidelines focus on the role of stakeholders
related to the company.
The development of science that occurs in the perspective of Good Corporate Governance begins on
the basis of agency theory which states that there is a separation between ownership and management
that has the potential to cause agency problems, ways to overcome agency problems through the
implementation of Good Corporate Governance. Implementation of guidelines for Good Corporate
Governance is an obligation for the company. This is more aimed at the existence of responsibility to
the public (public accountability) relating to the company's operational activities and it is expected that
the company can comply with the provisions outlined in a positive law. In addition, this is related to
the level of compliance of sharia with sharia principles as described in the Qur'an, Hadith, and Ijma 'of
the Ulama. Research related to Good Corporate Governance in the Islamic perspective with the
achievement of company performance is expected to provide an overview of the Good Corporate
Governance framework that recognizes the rights of stakeholders as determined by law and encourages
active cooperation between companies and stakeholders to create employee welfare, performance, and
corporate sustainability.


Keywords


Islamic Corporate Governance, Agency Theory and Performance

Full Text:

PDF

References


Anand, S. (2008). Essentials of Corporate Governance. Canada : John Wiley & Sons, Inc

Agustian, A.G. (2009). Spiritual Company:Kecerdasan Spititual Pembawa Sukses Kampiun Bisnis Dunia. Jakarta:Arga Publishing

Brennan, N. M., & Solomon, J. (2008). Corporate Governance, Accountability and Mechanisms of Accountability : An Overview. Accounting, Auditing& Accountability Journal, 21 (7)

Chapra, M., & Ahmed, H. (2002). Corporate Governance in Islamic Financial Institutions. Jeddah : Islamic

Effendi, M. A. (2016). The Power of Good Corporate Governance.Edisi 2. Jakarta : Salemba Empat

Hasan, Z. (2009). Corporate Governance : Western and. International Review of Business Research Papers, 2 (9)

Hashim, F., Mahadi, N. D., & Amran, A. (2015). Corporate Governance and Sustainability Practices in Islamic. Procedia Economics and Finance,31 (43)

Hayat, R., & Hassan, M. K. (2016). Does an Islamic Label Indicate Good Corporate Governance? Journal of Corporate Finance, 10(8)

Indrawaty, & Wardayati, S. M. (2016). Implementing Islamic Corporate Governance (ICG) and Islamic Social Reporting (ISR) in Islamic Financial Institution (IFI). Journal of Social and Behavioral Science,21 (39)

Iqbal, Z., & Mirakhor, A. (2012). Financial Inclusion : Islamic Finance Perspective. Journal of Islamic Business and Management, 2 (1)

Jensen, M. C. (2000). Us Corporate Governance: Lessons from the 1980's. Wiley : John Leslie Livingstone

Kakabadse Nada K., Linda Lee D., Cicile R.(2005). Corporate Social Responsibility and Stakeholder Approach : A Conceptual Review.International Journal of Business Governance and Ethics,1(4)

Lukviarman, N. (2016). Corporate Governance : Menuju Penguatan Konseptual Dan Implementasi Di Indonesia. Jakarta: Era Adicitra Intermedia

Mansor, M. L. (2015). Islamic Perspective of Corporate Governance. University Bulletin, 17(1)

Monks, R., & Minow, N. (2004). Corporate Governance. Boston : Blackwell Publisher

OECD. (1999). OECD Principles of Corporate Governance. Danvers: Meeting of the OECD Council

Ramli, J. A., & Ramli, M. I. (2016). Corporate Governance and Corporate Performance of Malaysian Companies: Examining from an Islamic Perspektive. Journal of Economics and Finance, 35 (16)

Shaw, J. C. (2003). Corporate Governance and Risk: A System Approach. New Jersey: John Wiley & Sons, Inc

Shibani, O., & Fuentes, C. D. (2017). The differences and the similarities between corporate. Journal of Research in International Business and Finance, 11 (29)

Steiner, J. F., & Steiner, G. A. (2009). Business, Government, and Society: A Managerial Perspective, Text and Cases. Boston: McGraw-Hill

Tapanjeh, A. M. (2009). Corporate governance from the Islamic perspective:. Critical Perspectives on Accounting,20 (5)

Tikawati. (2016). Pengaruh Corporate Governance, Growth Opportunity dan Net Profit. Jurnal Ekonomi dan Bisnis Islam, 1 (2)

Tricker, R. I. (2009). Corporate Governance: Principles, Policies, and Practices. UK: Oxford University Press




DOI: https://doi.org/10.36766/ijag.v3i1.31

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.