Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia
The implementation of good governance practices for Islamic products and services is significantly important in order to ensure its sustainability in the long-run. Furthermore, the strong regulatory framework of governance structures which is based on Shariah principles can help to reduce fraud, dis...
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| Format: | Article |
| Language: | English |
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UUM Press
2016
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| Online Access: | https://repo.uum.edu.my/id/eprint/29552/1/IJIB%2001%2001%202016%2060-75.pdf https://doi.org/10.32890/ijib2016.1.1.5 |
| _version_ | 1803629683897532416 |
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| author | Zainuddin, Zaemah Nordin, Norhafiza |
| author_facet | Zainuddin, Zaemah Nordin, Norhafiza |
| author_sort | Zainuddin, Zaemah |
| collection | UUM |
| description | The implementation of good governance practices for Islamic products and services is significantly important in order to ensure its sustainability in the long-run. Furthermore, the strong regulatory framework of governance structures which is based on Shariah principles can help to reduce fraud, dishonesty and other unethical practices in doing businesses. Nevertheless, for a new Islamic product such as Islamic real estate investment trust, lack of specific standards and guidelines stated for the appointment of Shariah Advisor (SA) may distort the optimum growth and future development of this product. Thus, this paper examine the practice of selecting Shariah Advisory Committee by Islamic REIT companies in Malaysia using five standard governance framework which are independence, confidentiality, competence, consistency and disclosure. The data are taken from the Islamic REITs companies annual reports and interviews with relevant authorities such as Bank Negara Malaysia and Securities Commission Malaysia. Results from this study suggest that information of Shariah Advisory Board/Committee members and qualifications are not properly disclosed in the annual report and the term of appointment of Shariah Advisory Committee in some of the REIT companies is too long. In addition, the elements of Islamic auditing or reporting are vague. These factors are significantly important as they show the important role of good governance in ensuring the faith of investors is not being compromised and the Islamic REIT is Shariah compliant. Thus, it can be concluded that more effort need to be put forward in producing a good Islamic governance framework for Islamic REIT. |
| first_indexed | 2024-07-04T06:41:45Z |
| format | Article |
| id | uum-29552 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:41:45Z |
| publishDate | 2016 |
| publisher | UUM Press |
| record_format | dspace |
| spelling | uum-295522023-06-14T10:40:05Z https://repo.uum.edu.my/id/eprint/29552/ Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia Zainuddin, Zaemah Nordin, Norhafiza HG Finance The implementation of good governance practices for Islamic products and services is significantly important in order to ensure its sustainability in the long-run. Furthermore, the strong regulatory framework of governance structures which is based on Shariah principles can help to reduce fraud, dishonesty and other unethical practices in doing businesses. Nevertheless, for a new Islamic product such as Islamic real estate investment trust, lack of specific standards and guidelines stated for the appointment of Shariah Advisor (SA) may distort the optimum growth and future development of this product. Thus, this paper examine the practice of selecting Shariah Advisory Committee by Islamic REIT companies in Malaysia using five standard governance framework which are independence, confidentiality, competence, consistency and disclosure. The data are taken from the Islamic REITs companies annual reports and interviews with relevant authorities such as Bank Negara Malaysia and Securities Commission Malaysia. Results from this study suggest that information of Shariah Advisory Board/Committee members and qualifications are not properly disclosed in the annual report and the term of appointment of Shariah Advisory Committee in some of the REIT companies is too long. In addition, the elements of Islamic auditing or reporting are vague. These factors are significantly important as they show the important role of good governance in ensuring the faith of investors is not being compromised and the Islamic REIT is Shariah compliant. Thus, it can be concluded that more effort need to be put forward in producing a good Islamic governance framework for Islamic REIT. UUM Press 2016 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/29552/1/IJIB%2001%2001%202016%2060-75.pdf Zainuddin, Zaemah and Nordin, Norhafiza (2016) Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia. International Journal of Islamic Business (IJIB), 1 (1). pp. 60-75. ISSN 0127- 662X https://e-journal.uum.edu.my/index.php/ijib/article/view/13378 https://doi.org/10.32890/ijib2016.1.1.5 https://doi.org/10.32890/ijib2016.1.1.5 |
| spellingShingle | HG Finance Zainuddin, Zaemah Nordin, Norhafiza Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia |
| title | Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia |
| title_full | Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia |
| title_fullStr | Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia |
| title_full_unstemmed | Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia |
| title_short | Addressing Governance Issue in Islamic Real Estate Investment (I-Reits): A Case Study for OIC Country - Malaysia |
| title_sort | addressing governance issue in islamic real estate investment i reits a case study for oic country malaysia |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/29552/1/IJIB%2001%2001%202016%2060-75.pdf https://doi.org/10.32890/ijib2016.1.1.5 |
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