The Role of Corporate Governance, Integrated Reporting and Financial Sustainability in Islamic Banking of Pakistan; A Conceptual Review

##plugins.themes.academic_pro.article.sidebar##

Published Jun 1, 2024
https://doi.org/10.61506/02.00217
Download
PDF
Statistic
Vol. 10 No. 2 (2024): Journal of Policy Research

##plugins.themes.academic_pro.article.main##

Abdullah Shahbaz Anwar Ghaazi
Assistant professor, Department of Commerce, Govt. Willayat Hussain Islamia Graduate College, Multan
Muhammad Noman Yaseen
COMSATS University Islamabad, Vehari Campus, Vehari, Pakistan
Asad Qayoom
NCBA&E, Lahore, Pakistan
Saad Munir
COMSATS University Islamabad, Vehari Campus, Vehari, Pakistan
Asif Mahmood
COMSATS University Islamabad, Vehari Campus, Vehari, Pakistan

Abstract

The current study indicates the importance of Islamic banking deposits as a paramount sector with its unique blend of moral principles and financial practices. Inside the situation of Islamic banking in Pakistan, where shared values and moral principles clasp considerable sway, integrated reporting shoulders heightened consequence in communicating the all-inclusive value created by these institutions to stakeholders. In this study corporate governance serves as the basis of effective management and oversight in Islamic banking institutions operating in Pakistan. Adherence to Sharia principles of clarity, fairness, and accountability not only confirms compliance but also fosters trust and confidence among stakeholders, thereby enhancing the strength of the sector.  The financial sustainability, a core tenet of Islamic banking in Pakistan, continues beyond ordinary profitability to encompass social welfare and environmental stewardship. So the careful with risk management, reasonable wealth distribution, and investment in socially responsible projects, Islamic banks in Pakistan can achieve sustainable financial performance while upholding their ethical obligations.  Ultimately, the convergence of combined reporting, corporate governance, and financial sustainability not only reinforces the resilience of Islamic banking in Pakistan but also strengthens its role as a driver of inclusive growth and ethical finance in the country's financial ecosystem.

##plugins.themes.academic_pro.article.details##

Creative Commons License

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

How to Cite
[1]
Ghaazi, A.S.A. , Yaseen, M.N. , Qayoom, A. , Munir, S. and Mahmood, A. 2024. The Role of Corporate Governance, Integrated Reporting and Financial Sustainability in Islamic Banking of Pakistan; A Conceptual Review. Journal of Policy Research. 10, 2 (Jun. 2024), 153–157. DOI:https://doi.org/10.61506/02.00217.
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Adnan, M., Rashid, M., Khan, S. N., & Baig, F. J. (2023). Impact of Service Quality on Business Sustainability: A Mediation-Moderation Prospective. Pakistan Journal of Humanities and Social Sciences, 11(2), 2737–2745-2737–2745. DOI: https://doi.org/10.52131/pjhss.2023.1102.0564
  2. Ansari, M. A. A., Sajid, M., Khan, S. N., Antohi, V. M., Fortea, C., & Zlati, M. L. (2024). Unveiling the effect of Renewable Energy and Financial Inclusion towards sustainable environment: Does Interaction of Digital Finance and Institutional Quality Matter? Sustainable Futures, 100196. DOI: https://doi.org/10.1016/j.sftr.2024.100196
  3. Arbani, Y., & Siddiqui, D. A. (2023). Examining the link between integrated reporting and a company's value and the kind of disclosure in Pakistan. Available at SSRN. DOI: https://doi.org/10.2139/ssrn.4432248
  4. Chouaibi, Y., Belhouchet, S., Chouaibi, S., & Chouaibi, J. (2022). The integrated reporting quality, cost of equity and financial performance in Islamic banks. Journal of Global Responsibility, 13(4), 450-471. DOI: https://doi.org/10.1108/JGR-11-2021-0099
  5. Gulzar, U., Khan, S. N., Baig, F. J., Ansari, M. A. A., Akram, R., & Kamran, M. (2021). The Impact Of Corporate Governance On Risk Management: Evidence From The Banking Sector Of Pakistan. Bulletin of Business and Economics (BBE), 10(3), 196-207.
  6. Hamad, S., Draz, M. U., & Lai, F.-W. (2020). The impact of corporate governance and sustainability reporting on integrated reporting: A conceptual framework. Sage Open, 10(2), 2158244020927431. DOI: https://doi.org/10.1177/2158244020927431
  7. Hill, C. W., & Jones, T. M. (1992). Stakeholder‐agency theory. Journal of management studies, 29(2), 131-154. DOI: https://doi.org/10.1111/j.1467-6486.1992.tb00657.x
  8. Husnah, H., & Fahlevi, M. (2023). How do corporate social responsibility and sustainable development goals shape financial performance in Indonesia's mining industry? Uncertain Supply Chain Management, 11(3), 1383-1394. DOI: https://doi.org/10.5267/j.uscm.2023.5.099
  9. Hussain, R. I., Rashid, H. A., Ali, A., Thair, M. S., & Noman, M. (2020). The Mediating Role of Firm Innovativeness between Top Management Team Diversity and Sustainable Firm Performance of Non-Financial Listed Companies of Pakistan. Paradigms, 14(2), 64-70.
  10. Jan, A. A., Lai, F.-W., & Tahir, M. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315, 128099. DOI: https://doi.org/10.1016/j.jclepro.2021.128099
  11. Jones, T. M. (1980). Corporate social responsibility revisited, redefined. California management review, 22(3), 59-67. DOI: https://doi.org/10.2307/41164877
  12. Khan, S. N., & Ali, E. I. E. (2017). How intellectual capital moderates the relationship between corporate governance and firm performance in the capital market of Pakistan: A conceptual review and proposal. Journal of Economic & Management Perspectives, 11(2), 359-371.
  13. Khan, S. N., & Ali, E. I. E. (2018). The Influence of Corporate Governance on Firm Performance; Empirical Evidence from Pakistan. Asian Journal Of Multidisciplinary Studies, 6(5).
  14. Khan, S. N., Ali, E. I. E., Anjum, K., & Noman, M. (2019). Enterprise Risk Management and Firm Performance in Pakistan: Interaction effect of intellectual capital. Int. J. of Multidisciplinary and Current research, 7.
  15. Mahajan, R., Lim, W. M., Sareen, M., Kumar, S., & Panwar, R. (2023). Stakeholder theory. Journal of Business Research, 166, 114104. DOI: https://doi.org/10.1016/j.jbusres.2023.114104
  16. Mohiuddin, S. K., & Siddiqui, D. A. (2023). The development of the Maqasid al Shariah Index to assess the sharia compatibility performance of Islamic Industry including other Industry and financial industry & Banks. Available at SSRN. DOI: https://doi.org/10.2139/ssrn.4432530
  17. Peev, E. (1972). The Political Economy of Corporate Governance. Economic Review, 62, 777-795.
  18. Rahman, H. U., Zahid, M., Asif, M., & Ullah, Z. (2020). Sustainability key performance indicators in Islamic banking sectors of Malaysia and Pakistan: a scale based evidence. Journal of Islamic Business and Management, 10(1). DOI: https://doi.org/10.26501/jibm/2020.1001-005
  19. Rehman, S. U., Khan, S. N., Subhani, W., Mehboob, I., Yaseen, M. N., & Qayoom, A. (2023). Impact of Distributed Ledger Technology (DLT) and Fintech Investment on Central Bank Policy and Monetary Policy Effectiveness. Bulletin of Business and Economics (BBE), 12(3), 202-210. DOI: https://doi.org/10.61506/01.00022
  20. Samarah, W. A., & Tellawi, M. (2023). The Palestinian Economy and the Absence of a Monetary Policy. Journal of Applied Professional Studies, 4(9).
  21. Ur Rehman, Z., Zahid, M., Rahman, H. U., Asif, M., Alharthi, M., Irfan, M., & Glowacz, A. (2020). Do corporate social responsibility disclosures improve financial performance? A perspective of the Islamic banking industry in Pakistan. Sustainability, 12(8), 3302. DOI: https://doi.org/10.3390/su12083302
  22. Yusuf, M., Dasawaty, E., Esra, M., Apriwenni, P., Meiden, C., & Fahlevi, M. (2024). Integrated reporting, corporate governance, and financial sustainability in Islamic banking. Uncertain Supply Chain Management, 12(1), 273-290. DOI: https://doi.org/10.5267/j.uscm.2023.9.022

Most read articles by the same author(s)