Revisiting Corporate Governance through Shariah Compliance: Evidence, Theory, and Future Research Directions from an AI-Assisted Systematic Review

Abstract

Despite the growing importance of Shariah compliance in Islamic finance, existing research on corporate governance through Shariah compliance remains fragmented across disciplines, jurisdictions, and methodological approaches, limiting theoretical integration and practical applicability. This study aims to systematically review and synthesise the literature on corporate governance through the lens of Shariah compliance by employing an AI-assisted systematic review approach. Using Scopus AI, the review was conducted on 25 September 2025 and involved structured analysis through AI-generated summaries, expanded summaries, concept mapping, and emerging theme detection. The findings reveal that Shariah compliance functions as a substantive governance mechanism that strengthens board effectiveness, internal controls, transparency, risk management, and stakeholder trust in Islamic financial institutions and Shariah-compliant firms. The review further demonstrates that corporate governance through Shariah compliance is underpinned by an integrated theoretical framework combining agency, stewardship, and stakeholder theories, enriched by Islamic jurisprudential principles. Emerging themes indicate a shift toward sustainability-oriented governance, ESG integration, and technology enabled Shariah compliance, including blockchain and artificial intelligence applications. The study contributes theoretically by advancing a values-based governance paradigm and practically by offering insights for regulators, policymakers, and practitioners seeking to enhance ethical governance and sustainable finance. These findings highlight the evolving role of Shariah compliance as both a governance mechanism and a strategic capability in contemporary corporate governance.