Impact of corporate governance on Islamic financial institution in Gulf Cooperation Council countries 's markets. Comparative study of GCC's Islamic Financial Services Industry with International Financial and Securities Markets

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Impact of corporate governance on Islamic financial institution in Gulf Cooperation Council countries 's markets . Comparative study of GCC 's Islamic Financial Services Industry with International Financial and Securities Markets

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Good governance is essential to the ability of any enterprise or organization to protect the interests of its stakeholders and in particular the shareholders . Corporate governance is therefore mainly concerned with ensuring that the corporation is run in the interests of the stakeholders and more so , the shareholders (Cornforth

2004 . Adam Smith views corporate governance as the invisible hand that is also forms the key principle on which the organization of the economy is founded on . The first theorem of Arrow-Debreu theorems of welfare economics argues that allocation is Pareto efficient if the goal of firms is maximization of their shareholders ' wealth and individuals to chase their own interests . The second theorem explains that any Pareto efficient allocation can be executed as a competitive equilibrium as long there is appropriate lump sum taxes (Gorton Schmid 1999 . In today 's world , corporations exist to specifically create wealth and prosperity for shareholders and the legal framework embodies this . Law is perceived to play a very important role in corporate governance . In most organizations in the Western world such as the United Kingdom and the United States , managers have a very strong duty to act in the interest of the firm 's shareholders (Grais Pellegrini 2009 . Efficient use of resources implies using them to pursue the...