Abstract
Corporate governance is a combination of rules for the supervision and
administration of companies in order to achieve transparency, accountability,
disclosure responsibilities and fairness. These philosophies of corporate
governance protect the interests of shareholders and increase their confidence
in the financial market. The Shari’ah scholars assert that Shari’ah offers a
broad mechanism to administer religious rites but along with other aspects of
life including politics, history, geography, anthropology, international law and
international relations, business and contractual law. Islamic law is also based
on the principles of ethics, honesty and integrity in order to achieve
transparency, accountability (by creating a system of check and balance),
disclosure and fairness as these are the strengths of corporate governance as
well. This paper investigates the shari’ah compliant rules of corporate
governance to assess the impact of these principles in Islamic financial market.
The methodology employed to conduct this study is doctrinal along with the
principles of qualitative research; relying upon inductive approach and
exploratory philosophy. This paper will contribute meaningfully in the existing
literature.
Keywords: corporate governance, Islamic principles of corporate governance,
transparency, accountability
Samza Fatima, muhammad bilal, Muhammad Ishtiaq. (2019) Shari’ah Compliant Corporate Governance, Journal of Managerial Sciences, Volume 13, Issue 4.
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