Proposing a corporate governance model for an Islamic property developer
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 4 April 2024
Abstract
Purpose
The purpose of this study include analyzing the conformity between the General Guidelines for the Governance of the Indonesian Sharia Entities (GGG-ISE) and the implementation in the field and proposing a model of corporate governance for Islamic property developers.
Design/methodology/approach
This research uses a qualitative method with a case study approach. The researcher used a structured interview method and chose a purposive technique to determine the interviewees. This study has seven interviewees representing three Islamic property developer companies in Jember Regency, East Java, Indonesia. Data collection was conducted from June to July 2023, with a duration of about 60 min for each interviewee. The interviews were conducted face-to-face in each interviewee’s residential office.
Findings
The results showed that the companies had implemented several principles of GGG-ISE, namely, ethical and responsible actors, risk management, internal control, compliance, disclosure and transparency by making financial reports, shareholder rights and stakeholder rights, both internal and external stakeholders. Furthermore, this study found that GGG-ISE does not comply with the components of the organizing organ group. This study also found that governance reports have not been implemented in GGG-ISE components. In addition, this study identified a new component that must be present and not found in GGG-ISE, namely, a statement of the use of contracts for mudharib owners and between mudharib owners and stakeholders. Based on these findings, this study proposes a governance model for Islamic property developer companies called the GGG-IPDE.
Originality/value
This research is a pioneer in proposing a corporate governance model for Islamic property developers.
Keywords
Acknowledgements
The author would like to thank the Institute for Research and Community Service, University of Jember, Indonesia, which has provided funding for this research under the Research Group Grant scheme in 2023.
Declaration of conflicting interests: The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of this article.
Citation
Puspitasari, N., Mufidah, A., Prihatini, D., Muhsyi, A. and Suroso, I. (2024), "Proposing a corporate governance model for an Islamic property developer", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-02-2024-0017
Publisher
:Emerald Publishing Limited
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