Purpose

The paper aims to examine the impact of Shari'ah governance quality on environmental, social and governance (ESG) performance in Islamic banks.

Design/methodology/approach

The study's sample consists of 66 Islamic banks from 14 countries over 2015–2019. The research uses the Heckman model, which is a two-stage estimation method to obtain unbiased estimates, as ESG scores are only observable for 17 Islamic banks in Eikon Refinitiv database at the time of the analysis.

Findings

The analysis shows that Shari'ah governance has a beneficial role to achieve ESG performance. The analysis also shows that enhanced profiles of Shari'ah supervisory boards' (SSB) attributes are more efficient than the operational procedures to promote ESG performance. In addition, the analysis shows that enhanced SSBs' attributes strengthen the bank's corporate governance framework, while sound-designed procedures increase the bank's social activities by emphasizing their roles to ensure Shari'ah compliance. Finally, the analysis sheds light on the failure of Shari'ah governance to promote environmental performance.

Research limitations/implications

The existing databases providing companies' ESG-related information still do not offer sufficient data to conduct an international study with a larger sample of Islamic banks (IBs) having ESG scores for a more extended period.

Practical implications

The research provides policy insights to Islamic banks' stakeholders to promote social and governance performance in the Islamic finance industry through improving Shari'ah governance practices. However, raising environmental awareness is imminent among all actors implicated in the Shari'ah governance processes to help overcome the anthropogenic risks.

Originality/value

The research complements the governance-banks' ESG performance literature by examining the role of Shari'ah governance. The research also extends the literature on Islamic banks' sustainability by pointing to the Shari'ah governance failure to enhance environmental performance and thus achieve Maqasid al-Shariah regarding the environment.

中文翻译：

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伊斯兰银行的伊斯兰教法治理质量以及环境、社会和治理绩效。跨国证据

目的

本文旨在探讨伊斯兰教法治理质量对伊斯兰银行环境、社会和治理（ESG）绩效的影响。

设计/方法论/途径

该研究的样本包括 2015 年至 2019 年期间来自 14 个国家的 66 家伊斯兰银行。该研究使用 Heckman 模型，这是一种两阶段估计方法，以获得无偏估计，因为在分析时仅可在 Eikon Refinitiv 数据库中观察到 17 家伊斯兰银行的 ESG 分数。

发现

分析表明，伊斯兰教法治理对于实现 ESG 绩效具有有益作用。分析还表明，强化伊斯兰教法监事会 (SSB) 属性比提升 ESG 绩效的操作程序更有效。此外，分析表明，增强的SSB属性加强了银行的公司治理框架，而设计合理的程序通过强调其确保遵守伊斯兰教法的作用来增加银行的社会活动。最后，分析揭示了伊斯兰教法治理在促进环境绩效方面的失败。

研究局限性/影响

提供公司 ESG 相关信息的现有数据库仍然无法提供足够的数据来开展国际研究，其中伊斯兰银行 (IB) 的样本规模更大，且在更长时间内具有 ESG 评分。

实际影响

该研究为伊斯兰银行的利益相关者提供政策见解，通过改善伊斯兰教法治理实践来提高伊斯兰金融行业的社会和治理绩效。然而，提高参与伊斯兰教法治理过程的所有参与者的环境意识迫在眉睫，以帮助克服人为风险。

原创性/价值

该研究通过考察伊斯兰教法治理的作用，补充了治理银行的 ESG 绩效文献。该研究还通过指出伊斯兰教法治理未能提高环境绩效，从而未能实现关于环境的伊斯兰教法，从而扩展了有关伊斯兰银行可持续性的文献。