Obstacles to the implementation of Shariah governance practices in financial markets
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Obstacles to the implementation of Shariah governance practices in financial markets

Document Type : Original Article

Authors
Seyed Ali Hosseini 1
بابائی Babaei 2
1 Associate Professor, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.
2 Instructor, Department of Accounting, Payame Noor University, Tehran, Iran.
10.22034/jse.2021.11480.1626
Abstract
The neglect of many components of morals and sharia rules in conventional models of corporate governance indicates that in Islamic finance industry, the implementation of sharia governance practices in which sharia supervision is centralized, is inevitable. Sharia governance is a kind of Islamic corporate governance which adds additional values to the existing corporate governance system. The purpose of this study is to examine the perceptions of the academicians and financial markets practitioners about the obstacles to the implementation of sharia governance practices in the financial markets. This study is a survey in which data is collected by sending questionnaires and then analyzed using descriptive and inferential statistics. The findings of 171 collected questionnaires in 2020 indicate that the large majority of the respondents have considered the obstacles to the implementation of sharia governance practices in the financial markets to be important. The results also show that the level of education is effective on the views of respondents regarding the obstacles to the implementation of sharia governance practices in the financial markets. However, respondents' work experience, their employment status and academicians rank do not affect their views. The research findings can provide a useful source of information in a Shariah governance framework in the Iranian Islamic finance industry in future.
Keywords
Corporate governance
Islamic corporate governance
Shariah governance
Shariah board
Financial markets
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Quarterly Journal of Securities Exchange
Volume 15, Issue 57
Spring 2022
Pages 275-310