Developing a corporate governance reporting score for the Malaysian banking sector / Siti Nurain Muhmad, Hafiza Aishah Hashim and Mohd Hassan Che Haat.

There is a limited study on banking institution in Malaysia, especially the ones related to the corporate governance reporting of banks. The main objective of this study is to develop the Malaysian Bank Governance Reporting Score (MBGRS) for banking institutions in Malaysia. In these recent years, Bank Negara Malaysia has issued guidelines on corporate governance for banking institutions. Thus, it leads to the development of bank governance reporting score in order to measure the commitment of bank towards corporate governance. The overall finding of bank governance reporting score revealed that there is a lack of reporting in areas such as Board Structures, Duties and Effectiveness, Accountability and Audit, and Shareholder Rights. The findings provide a signal to identify the lack of area for the improvement in corporate governance of the banking sector in Malaysia

Operational Risk and Financial Performance of Banks in The Middle East and North Africa

This study examines the relationship between operational risk and financial performance of banks in the Middle East and North Africa (MENA), utilising data from 135 banks spanning 14 countries from 2015 to 2019. The results show that operational risk negatively affects banks’ financial performance in the MENA region. This study recommends that banks tailor and constantly improve their risk management process to put operational risk management and control processes in place. The findings entail the importance of developing relevant frameworks and policies for prompt action in reporting and recording operational loss. Thus, banks’ management should formulate and implement appropriate procedures to ensure that timely information is obtained, especially regarding profit and loss, which will ultimately help boost the banks’ financial performance in the MENA region. This study is unique as it contributes to the existing body of knowledge by investigating the role of operational risk in determining banks’ financial performance in the MENA region

Islamic financing for small medium enterprises: Challenges and opportunities

This study attempts to discuss the challenges and opportunities of Islamic financing for Small Medium Enterprise (SMEs), as the Islamic finance industry's growth and SMEs are stimulated in this recent year. The government has introduced Islamic SME financing since 2012, and Malaysia has promoted it by granting a rebate for the participated parties, especially Islamic financial institutions. However, the government's opportunities are still in the slow mode to be grabbed by SMEs. With selected literature related to SMEs and Islamic financing, this study discussed SMEs and Islamic banks' practices in Malaysia. Based on the literature, several issues had to be highlighted, such as SMEs' readiness to have the opportunity with larger firms, SMEs' behaviours, and attitudes when dealing with external supports, as well as their awareness of business financing. Thus, this study highlights the challenges and real issues among SMEs and points out the opportunities for improvement that are expected to benefit SMEs and Islamic financial institutions in Malaysia

OPERATIONAL RISK AND FINANCIAL PERFORMANCE OF BANKS IN THE MIDDLE EAST AND NORTH AFRICA

This study examines the relationship between operational risk and financial performance of banks in the Middle East and North Africa (MENA), utilising data from 135 banks spanning 14 countries from 2015 to 2019. The results show that operational risk negatively affects banks’ financial performance in the MENA region. This study recommends that banks tailor and constantly improve their risk management process to put operational risk management and control processes in place. The findings entail the importance of developing relevant frameworks and policies for prompt action in reporting and recording operational loss. Thus, banks’ management should formulate and implement appropriate procedures to ensure that timely information is obtained, especially regarding profit and loss, which will ultimately help boost the banks’ financial performance in the MENA region. This study is unique as it contributes to the existing body of knowledge by investigating the role of operational risk in determining banks’ financial performance in the MENA region

Kesan pembinaan pemecah ombak terhadap sosio-ekonomi masyarakat dan alam sekitar: kajian kes di Pelabuhan Perikanan Chendering

Pembangunan mapan adalah sangat penting bagi memastikan setiap perancangan memberi impak positif terhadap sosioekonomi dan alam sekitar kepada komuniti setempat. Pembinaan pemecah ombak dianggap perlu untuk sesetengah pelabuhan bagi menjalankan aktiviti pendaratan ikan dengan lebih efisien. Pemecah ombak telah dibina di Pelabuhan Perikanan Chendering (PPC) untuk memudahkan bot-bot perikanan berlabuh dan menjadi pusat perusahaan perikanan terbesar di negeri Terengganu yang memberi manfaat yang besar kepada komuniti nelayan setempat. Walau bagaimanapun, setelah sekian lama ia beroperasi, terdapat beberapa masalah yang dihadapi oleh komuniti nelayan apabila sukar untuk melabuhkan bot mereka disebabkan mendapan pasir yang semakin serius di kawasan tersebut. Oleh itu, objektif kajian ini adalah untuk mengkaji kesan pembinaan pemecah ombak terhadap sosioekonomi masyarakat dan alam sekitar. Data yang digunakan untuk kajian kes ini melibatkan dua kaedah iaitu data primer dan sekunder. Data primer untuk kajian kes ini tidak melibatkan borang soal kaji selidik dan ia diperoleh dengan melakukan kaedah temu bual separa berstruktur dengan pihak yang terlibat secara langsung. Dapatan kajian ini menunjukkan rekod pendaratan ikan semakin menurun dan hakisan pantai semakin meningkat. Kajian ini membuktikan pembinaan pemecah ombak telah menyebabkan hakisan pantai dan ia menjadi semakin teruk apabila pengumpulan sedimen telah menyebabkan kecetekan berlaku di kawasan PPC yang menyebabkan pendaratan ikan semakin berkurang. Ini selari dengan dapatan data primer yang telah dijalankan secara temu bual daripada nelayan dan pihak agensi yang berkaitan dimana nelayan mengakui bahawa keluasan ‘harbour basin’ yang makin berkurang dan cetek menyebabkan kekurangan tempat untuk melabuhkan bot. Tambahan lagi, mendapan pasir yang berlaku adalah disebabkan bentuk pemecah ombak yang tidak sesuai dengan keadaan di kawasan PPC

Corporate ESG performance, Shariah-compliant status and cash holdings

Purpose: This study aims to examine the association between environmental, social and governance (ESG) performance and cash holdings, as well as whether this association is moderated by Shariah-compliant status. The aim was to test the joint effect of two ethical precepts, namely, the ESG and Shariah-compliant status, in explaining variations in cash holdings. Design/methodology/approach: A sample set that consisted of 9,244 firm-year observations from 25 countries from 2016 to 2020 was analysed using regression analysis. Firm-level data were sourced from Thomson Reuters and Refinitiv databases, while country-level data were derived from the World Bank and Hofstede Insights websites. Findings: Firms with greater ESG performances were found to have higher cash holdings. The positive association between ESG performance and cash holdings was greater for Shariah-compliant firms compared to non-Shariah-compliant firms. In support of the stakeholder theory, the evidence indicated that Shariah-compliant firms with higher ESG commitments also have higher cash holdings as part of their corporate strategy. Practical implications: These findings provided further comprehension to investors that ESG practices among Shariah-compliant firms are essential information during investment decision-making processes. Social implications: These findings highlighted ethical corporate practices through two frameworks, namely, ESG commitment and Shariah compliance; hence, contributing towards strategies to reach the Sustainable Development Goal 16 of promoting just, peaceful and inclusive societies. Originality/value: This study has focused on the motives for cash holdings by considering the ethical precepts embodying ESG and Shariah compliance to uphold the positive impact of high cash reserves