Impact of Islamic and conventional corporate governance mechanisms on ethical performance of Islamic banks: evidence from Malaysia

This paper aims to study empirically the impact of Islamic and conventional corporate governance mechanisms on ethical performance through econometric panel data constructed from 17 Malaysian Islamic banks observed over 7 years from 2005 to 2011. The results indicate that there is a significant relationship between the ethical performance of Malaysian Islamic banks, measured by the Profit Sharing Ratio (PSR); the Zakat Performance Ratio (ZPR) and the Islamic Income versus Non-Islamic Income Ratio (IIVNIR), and the Islamic governance variables.