ISLAMIC CORPORATE GOVERNANCE IS A HOLISTIC WAY OF IMPROVEMENT: EVIDENCE THROUGH ASSOCIATION BETWEEN ISLAMIC CORPORATE GOVERNANCE AND NON-FINANCIAL PERFORMANCE

Abstract

This study aims to make readers understand that Islamic Corporate Governance is an efficient tool to optimize the non-financial performance of Islamic Financial Institutions. Hence, a complex and comprehensive research model has been developed through combining knowledge and contextual and methodological gaps. The data was collected through quota sampling methods from leading Islamic banks. The total Sample size was one hundred and twenty-five respondents included in top-management of five major Islamic Banks. Analysis has been made through using structural equation modeling and findings indicated that Islamic Corporate Governance is an effective and efficient tool for optimization of non-financial performance of Islamic Banks that actually affect philosophy and concept of banking and indirectly optimizes the non-financial performance of Islamic Banks.