Corporate governance in Islamic perspective

• Published in: International journal of Islamic and Middle Eastern finance and management Vol. 6; no. 3; pp. 180 - 199
• Main Authors: Alam Choudhury, Masudul, Nurul Alam, Mohammad
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Group Publishing Limited 01.01.2013
• Subjects: Banks; Boards of directors; Corporate governance; Corporate objectives; Cultural heritage; Culture; Decision making; Employees; Epistemology; Ethics; Financial institutions; Financial services; Financial theory; Individualism; Institutionalism; Islamic financing; Organizational behavior; Organizational behaviour; Philosophy; Rationalism; Stockholders; Studies; Theory; Islamic corporate governance; Comparative Islamic finanec theory; Epistemology; Islam; Finance and society; Finance
• ISSN: 1753-8394; 1753-8408
• DOI: 10.1108/IMEFM-10-2012-0101

Purpose - The purpose of this paper is to delineate the substantially different theory and application of corporate governance idea in Islamic financial theory contrary to the perceived one in the literature. Thus, a comparative and contrasting examination of the topic is provided.Design methodology approach - A theoretical and extensively comparative study of the literature to bring out the objective of presenting the systemic theory of Islamic corporate governance underlying its specific epistemological foundations.Findings - The hetrodox theory of Islamic finance in regards to the theme of corporate governance is shown to be a viable alternative way of understanding this topic in the light of the particular Islamic epistemological premise. Thus, Islamic financial perspective, exemplified here in terms of corporate governance, is expounded.Research limitations implications - Empirical extension can be made but such epistemological responses are presently not available from the Islamic financial institutions because of their imperfect premise on the epistemology of unity of knowledge and organization on which the theory of Islamic corporate governance rests.Social implications - A vast social implication of corporate govarnance is opened by its epistemological inquiry comprehending integrated decision-making and systemic complemenatrities expending across society at large. Thereby, a socio-financial theory of corporate governance in the epistemological context is elaborated upon.Originality value - This is a pathbreaking paper premised on its epistemological approach of unity of knowledge and learning systems as a distinct contribution in the theory of corporate governance in the field of ethical socio-financial perspective.