The impact of Shariah governance on performance in Islamic banks (fixed-effects GLS regression)
| Model 2 | |||||
|---|---|---|---|---|---|
| ROA | ROE | ||||
| Predict sign | Coeff | Prob | Coeff | Prob | |
| BOD-index | + | 0.0159*** | 0.00 | 0.0135*** | 0.00 |
| AC-index | + | 0.0460*** | 0.00 | −0.0469*** | 0.00 |
| SSB-index | + | −0.0213*** | 0.00 | 0.0192*** | 0.00 |
| SIZE | + | −0.1005*** | 0.00 | −0.0851*** | 0.00 |
| LEV | – | 0.0043 | 0.64 | 0.0123 | 0.24 |
| AGE | + | 0.0161*** | 0.00 | 0.0039*** | 0.00 |
| Constant | + | 1.5902*** | 0.00 | 2.0445*** | 0.00 |
| R2 | 0.0632 | 0.0590 | |||
| Wald chi2 | 146.35 | 4417.84 | |||
| Prob > chi2 | 0.0000*** | 0.0000 | |||
| Model 2 | |||||
|---|---|---|---|---|---|
| ROA | ROE | ||||
| Predict sign | Coeff | Prob | Coeff | Prob | |
| + | 0.0159*** | 0.00 | 0.0135*** | 0.00 | |
| + | 0.0460*** | 0.00 | −0.0469*** | 0.00 | |
| + | −0.0213*** | 0.00 | 0.0192*** | 0.00 | |
| + | −0.1005*** | 0.00 | −0.0851*** | 0.00 | |
| – | 0.0043 | 0.64 | 0.0123 | 0.24 | |
| + | 0.0161*** | 0.00 | 0.0039*** | 0.00 | |
| + | 1.5902*** | 0.00 | 2.0445*** | 0.00 | |
| 0.0632 | 0.0590 | ||||
| 146.35 | 4417.84 | ||||
| 0.0000*** | 0.0000 | ||||
Note(s): This table presents the regression results of different measures of Shariah governance on performance. With BOD-index = average of the value assigned to each administration member; AC-index = average value assigned to each audit committee member; SSB-index = average value assigned to each Shariah council member; Size = Log Total Asset; Lev = Total Debt to Total Assets; Age: number of years since foundation. ***, ** and *, indicates significant at 1%, 5% and 10% levels, respectively