Examining Islamic banks performance through CSR, Shariah Audit and Regulatory Compliance: An empirical Assessment
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The current research attempted to investigate the role of Shariah Audit, corporate social responsibility (CSR), and regulatory compliance on islamic banks performance. The current research investigated the employees of Islamic banks in Pakistan who comprised the sample population. Using a structured questionnaire, the data was collected from 316 individuals selected through convenience sampling. The data was analyzed using SPSS software. Various statistical approaches including descriptive statistics, reliability analysis, correlation, and regression analysis were used for analysis. The current research indicated that corporate social responsibility, Sharia audits, and Sharia compliance carried a significant impact on the performance of Islamic banks. The introduction of external religious auditors in order to ensure Shariah compliance is advocated, which may provide the much-needed incentive to enhance governance and boost market with stakeholder trust. This study contributes to the development of policies pertaining to a better comprehension of the spread of CSR practices and the veracity of CSR reporting by Islamic banks in developing countries. This research comprises a significant addition to the academic literature on selected variables from the perspective of a developing country where CSR efforts are backed by the Islamic banking system. Additionally, the assessment of the validity of CSR disclosures clarifies the social responsibilities of business organizations towards their stakeholders and society. This inquiry was conducted to identify and draw attention to the factors that influence the performance of Islamic banks in Pakistan. It would provide Islamic bankers, policymakers, and other stakeholders with fresh insights that would strengthen their understanding of the topic.
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