Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

Exploration of Antecedents Behind Islamic Corporate Governance: Evidence from Pakistan

Author(s): Muhammad Awais, Qurat ul Ain Saboor, Ribbat Khan and Mohamed Asmy bin Mohd Thas Thaker

Objective: Corporate governance contains a set of associations among an organization’s management, its board of directors, its stockholders and other stakeholders as well, on the basis of which an organization is organized and focussed. Though, no one knows exactly behind the antecedents of Islamic corporate governance and also no standardized measures for the proficiency of organizations which may bring about the sustainability. The aim of the current study was to explore the antecedents of Islamic corporate governance in Pakistan. Methodology Self-developed Semi-structured scale (based on the literature review and the expert’s meetings) was castoff later content and context validity to get extensive array of expanded facts. Results As per the experts, here are no defined antecedents of Islamic corporate governance, but, organization are working as per some common antecedents. However, the differences lies in the fact that Islamic corporate governance is based on Shariah and the stakeholder’s perspective. Moreover, individuals make their decisions based on the information they have. Conclusion The most important drivers of Islamic corporate governance are: Structure, Independence, Heterogeneity, Monitoring, Shareholder Activism and Disclosure, and most importantly to have an excellent corporate governance mechanism based on these drivers.

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