Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 21, 2020 erstellt
Beschreibung:
In this paper, we investigate the relationship between corporate governance structures and financial flexibility for conventional and Islamic banks in the Middle East and North Africa region. We construct a novel financial flexibility index for the banking sector. We show that corporate governance has a significant effect on banks’ financial flexibility. However, Shari’ah governance rules determine how that relationship is manifested in Islamic banks. Our results show that Western corporate governance structures and one-size-fits-all approaches to corporate governance may lead to suboptimal financial flexibility positions. Importantly, we show that “soft policies” to banking regulation are value-enhancing for the banking sector