The impact of Shariah supervisory board characteristics on internal Shariah auditor Effectiveness, role of Management Support as a Moderator in Islamic financial institutions in the United Arab of Emirates
<p>The aim of this research was to investigate the impact of Shariah supervisory board</p><p>characteristics (SSBC) on the Internal Shariah auditor Effectiveness (ISAE), and the</p><p>role of Management Support as a Moderator in I...
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| Format: | thesis |
| Language: | eng |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=10510 |
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| Summary: | <p>The aim of this research was to investigate the impact of Shariah supervisory board</p><p>characteristics (SSBC) on the Internal Shariah auditor Effectiveness (ISAE), and the</p><p>role of Management Support as a Moderator in Islamic finance institutions in the United</p><p>Arab Emirates. The selected characteristics were independence, competence, and size</p><p>of SSB. A quantitative approach using Structural Equation Modelling (SEM) was</p><p>utilized as the main research design. The actual survey questionnaire was collected from</p><p>365 respondents (Shariah Supervisory Board, Internal Shariah Auditor, Audit and</p><p>governance committee, Accountants, Chief executive officers) and the data were</p><p>analyzed using confirmatory factorial analysis (CFA) to determine the impact of SSBC</p><p>on ISAE. The research results indicated the significant effects were independence ( =-</p><p>0.463, p<0.05), followed by competence ( =0.960, p<0.05), and only the size (</p><p>=1.124, p> 0.05). Moreover, management support moderated the relationships between</p><p>independence ( =-0.021, p<0.05) and competence ( =0.020, p<0.05). In conclusion,</p><p>independence and competence are the most dominant SSB factor that affects ISAE, and</p><p>the same thing happened as an influential moderator between SSB characteristics and</p><p>ISAE. In implication, IFIs should focus on management support to enhance the</p><p>effectiveness and impact of SSB characteristics on Internal Shariah auditor</p><p>effectiveness and performance. Also, this study suggested that AAOIFI standards as a</p><p>regulatory body of IFIs in UAE should look out how to design new roles and guidelines</p><p>to make the internal Shariah auditors more efficient and effective. The theoretical</p><p>research framework for this study is Maqasid al-Shariah theory Islamic as an umbrella</p><p>theory. Other theories used are Islamic agency theory and Islamic accountability theory.</p><p>The theoretical implications are that the results are beneficial to IFIs, regulators, and</p><p>policymakers in the area of SSB and ISAE to formulate suitable policies to ensure IFIs</p><p>make use of Islamic rules in a comprehensive manner. The practical implications of the</p><p>study of all the variables are consistent with AAOIFI standards.</p> |
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