Intellectual capital disclosure and corporate governance: empirical evidence from a cross country that offering Islamic bank services

Intellectual capital is imperative for Islamic banks given their unique characterisctiscs in that they offer innovative Shariah-based solutions to the modern financial problems. This study therefore examined the influence of corporate goverance on intellectual capital disclosure (ICD) practices of Islamic banks. Data from a sample of 33 Islamic banks for the period 2012 to 2018 were collected. A self-developed ICD checklist was used to measure the extent of IC information disclosed in the annual report. This paper also examines the relationship between ICD practices and several corporate governance components which includes board size, board meeting, board independence, board gender, board expertise, audit committee size, audit committee meeting, audit committee independence, audit committee gender and audit committee expertise. Our results revealed that having an effective corporate governance structure is essential, as it is able to influence the ICD practices of Islamic banks. However, instead of focusing on the role of the board, our paper highlights the importance role of audit committee functions. Specifically, the results suggest that larger or reasonable audit committee size tends to have varied skills and expertise among the audit committee members, resulting in more information by allowing for greater diversity of backgrounds and viewpoints. Gender diversity in audit members’ profiles will also encourage the board to be more effective and creative in generating innovative ideas, hence more IC will be created. This study adds to the empirical studies on corporate governance from Islamic banks’ perspectives covering several countries. It also introduce the Shariah capital, as one of components in the IC index to respond to the peculiarities of Islamic on intellectual capital

Share price reaction on corporate tax reforms in China

This paper elaborates on the changes in corporate taxation in China to accommodate the government's fiscal expenditure, specifically, the study highlights the effect of major corporate tax reforms in China on firms' share price. The result shows that the price reactions are significantly positive/ negative to corporate tax rate decreases/increases, relatively related to different taxpayer categories. This finding is not in line with the theory of Modigliani and Miller (1958; 1963), which may be due to a larger tax benefit being gained from the tax cut. The correlations between price changes and three firm factors (risk, firm size, debt-equity ratio) among the groups are statistically significant, further validating the result. These findings add to the growing literature seeking to understand China's capital market behaviour and also serves as a test of tax effect involving corporate tax

Islamic banking business of conventional banks: transition from windows to Islamic subsidiaries

Globally, Islamic banking grew by a compound annual growth rate of 17.3 percent between 2009 and 2014. The estimated size of the industry at the end of 2014 was given at US$2.1 trillion. This total dollar value of assets held by the Islamic financial institutions is less than 2 percent of the conventional banking industry; nonetheless, this is a huge achievement, considering it started from a zero base in the 1970s (Ernst & Young, 2013). Through the rate of growth has declined in recent years, the industry has nevertheless managed to grow by more than 15 percent even during the 2009 global crisis, whereas the overall banking assets remained static and economic growth in almost all countries was negative