This paper aims to examine the effect of Shariah Advisory Panel (SAP) on both the level of agency cost and fund performance against conventional corporate governance, within corporate and Shariah governance settings, between Shariah and conventional mutual fund (CMF), in an emerging economy of Malaysia during the period 2008-2015.,Panel data regression is appropriately used within corporate governance research because of empirical issues of unobserved heterogeneity effects to avoid spurious evidence. The secondary data of 172 CMFs and 80 Shariah mutual funds are gathered hand-collected from annual reports and master prospectuses for the purpose of analysis between the period 2008 and 2015, generating 2,016 fund-year observations.,SAP is found to have a positive effect on agency costs. Consequently, it leads to empirical evidence that substantiates a negative and marginally significant association with fund performance when designated by accounting measure. Thus, the Shariah monitoring proxy is not a good mechanism for controlling agency costs inconsistent with performance maximizing (agency cost minimizing) outcomes.,The unique data set of mutual funds used in this research may restrict the generalization of the findings unless mentioned and explained specifically the data characteristics. The single proxy for Shariah monitoring could be better off by having a list of different measures.,The paper highlights and suggests a consistent improvement in regulation that could be performed by policymakers pertaining to the non-trivial additional cost of implying Shariah governance.,This paper provides empirical evidence of the SAP effects from the view of a more complex monitoring structure in consequence of having an additional layer of governance, devoting on the trade-off between benefit and cost to shareholders.

中文翻译：

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马来西亚共同基金的回教教义监控，机构成本和基金绩效

本文旨在研究在新兴经济体中，在公司和伊斯兰教法治理环境中，在伊斯兰教法和常规共同基金（CMF）之间，伊斯兰教义咨询小组（SAP）对常规公司治理的代理成本和基金绩效水平的影响在2008年至2015年期间，由于未观察到的异质性影响的经验问题，为了避免虚假的证据，在公司治理研究中适当使用了面板数据回归。从2008年至2015年期间进行分析，从年度报告和主要招股说明书中手动收集了172个CMF和80个伊斯兰教义共同基金的二级数据，产生了2,016个基金年的观察结果。SAP被发现具有积极作用代理费用。所以，它导致了经验证据，证明了当采用会计方法指定时，它与基金业绩具有负相关和边际显着的关联。因此，Shariah监控代理不是控制与绩效最大化（代理成本最小化）结果不一致的代理成本的良好机制。除非特别提及和说明，否则本研究中使用的共同基金独特数据集可能会限制研究结果的推广。数据特征。可以通过列出一系列不同的措施来更好地管理伊斯兰教法。本文强调并建议政策制定者可以对涉及伊斯兰教法治理的不平凡的额外成本进行持续改进。