NEW INSIGHTS FOR AGENCY THEORY IN ISLAMIC FINANCIAL INSTITUTIONS: A REAPPRAISALzulkiflihasan
I am very grateful to share with you my recent article pertaining to agency theory in Islamic financial institutions. In view of the scarcity literatures on the subject, I wish to highlight one of the recent studies examining the state of corporate governance and the relevancy of agency theory in IFIs which is available in the journal of Corporate Governance: An International Review. 17 (2). pp. 142-158. Hopefully, my remarks and commentaries in this paper will enlighten further discourse on the agency theory in IFIs. For full article click here:
(i) Article Review: New Insight on Agency Theory in IFIs: A Reappraisal
(ii) Original Article: Safieddine, (2009). Islamic Financial Institutions and Corporate Governance: New Insights for Agency Theory. Corporate Governance: An International Review. 17 (2). pp. 142-158.
This paper specifically aims at critically examining the arguments put forward by Safieddine, (2009) on the new insights for agency theory in IFIs by highlighting several fundamental corporate governance issues. Safieddine, (2009) has made valuable contribution on the topic of corporate governance by providing useful and beneficial information on the agency theory in IFIs. Nevertheless, his approach is mainly influenced by the shareholders value model of corporate governance which is to certain extent contradicted with the existing literatures that advocate the stakeholders’ value system as the ideal model for Islamic corporate governance. Indeed there are some areas that need further explanation and clarification particularly in term of theoretical framework of the agency theory in IFIs as well as the foundational dimension of corporate governance in Islam from the epistemological aspect.
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