• Login
    View Item 
    •   DORA Home
    • Faculty of Business and Law
    • Leicester Castle Business School
    • Department of Accounting and Finance
    • View Item
    •   DORA Home
    • Faculty of Business and Law
    • Leicester Castle Business School
    • Department of Accounting and Finance
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    The Challenges Faced by Integrating Islamic Corporate Governance in Companies of Gulf Countries with Non-Islamic Companies Across Border through Merger and Acquisition

    Thumbnail
    View/Open
    Main article (205.9Kb)
    Date
    2017-04
    Author
    Bindabel, Wardah;
    Patel, Ashok;
    Yekini, Cecilia Olukemi
    Metadata
    Show attachments and full item record
    Abstract
    One method of achieving company expansion to address new markets and access cheaper funds is through international mergers and acquisitions (M&A). The companies in the Gulf zone following Islamic principles are keen to engage with non-Islamic companies, for example, European companies to access the benefits of globalization. However, for such takeover to succeed, congruence between the organization culture and the control system is necessary. The potentially diverse external legal and political environments can generate areas of concerns, which can only be addressed through harmonization of the corporate and financial governance of such organizations. There is a considerable body of literature on differences between Islamic and conventional corporate governance (CG), especially on financial models. However, not much research has been conducted on international M&A between companies following Islamic and the conventional CG. Such research is necessary, especially between different Islamic countries, to better the understand critical issues and let companies make more informed decisions. This study investigates the variation and extent of the Shariah CG code compliances among Islamic companies in three Gulf countries, namely Saudi Arabia, Kuwait, and the United Arab Emirates, and how it affect international crossborder M&A among the companies with the western ones. It was found that despite the strong economic and cultural ties between the Gulf countries states; there was diversity in the application of Islamic law within the selected countries and its effect on the international M&A. This paper can provide some insights view in controlling and organizing the M&A activities between Islamic and non-Islamic financial institutions, as the Islamic governance in practical terms, cannot be viewed as an identical homogenous practice across the Islamic domain. Cultural variations do exist.
    Description
    Citation : Bindabel, W., Patel, A and Yekini, K (2017) The Challenges Faced by Integrating Islamic Corporate Governance in Companies of Gulf Countries with Non-Islamic Companies Across Border through Merger and Acquisition. Australasian Journal of Islamic Finance and Business (AJIFB), 3 (1), pp. 29-38
    URI
    http://www.ajifb.net.au/index.php/AJIFB/article/view/21
    http://hdl.handle.net/2086/13302
    ISSN : 2206-4397
    Peer Reviewed : Yes
    Collections
    • Department of Accounting and Finance [414]

    Submission Guide | Reporting Guide | Reporting Tool | DMU Open Access Libguide | Take Down Policy | Connect with DORA
    DMU LIbrary
     

     

    Browse

    All of DORACommunities & CollectionsAuthorsTitlesSubjects/KeywordsResearch InstituteBy Publication DateBy Submission DateThis CollectionAuthorsTitlesSubjects/KeywordsResearch InstituteBy Publication DateBy Submission Date

    My Account

    Login

    Submission Guide | Reporting Guide | Reporting Tool | DMU Open Access Libguide | Take Down Policy | Connect with DORA
    DMU LIbrary