Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia

Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia

Islamic banks are banks that are set up to operate within the Islamic business framework that is more equitable and based on socio-economic welfare of the society and the people. In Islamic law on commercial transactions and other related contractual activities (the framework), transparency and ad...

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Main Authors: Rashidah Abdul Rahman, Nur Syatilla Saimi, Danbatta, Bello Lawal
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2016
Online Access:http://journalarticle.ukm.my/10792/
http://journalarticle.ukm.my/10792/
http://journalarticle.ukm.my/10792/1/14160-42999-1-PB.pdf
id ukm-10792
recordtype eprints
spelling ukm-107922017-10-10T12:39:57Z http://journalarticle.ukm.my/10792/ Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia Rashidah Abdul Rahman, Nur Syatilla Saimi, Danbatta, Bello Lawal Islamic banks are banks that are set up to operate within the Islamic business framework that is more equitable and based on socio-economic welfare of the society and the people. In Islamic law on commercial transactions and other related contractual activities (the framework), transparency and adequate disclosure are the fundamental determinants of a successful and peaceful relationship between the contracting parties. This is because the stakeholders of Islamic banks believed that the prescriptions of the framework would be the key determinants of the bank’s Ethical Identity Disclosures (EID). This study aimed at exploring and identifying the practical determinants of EID in Islamic banks. Disclosure information in annual reports (from 2007 to 2011) of 21 Islamic banks operating in Bahrain and Malaysia was gathered and analysed using Ethical Identity Index (EII) and Multiple Regression Analysis (MRA) models. The results of EII and MRA on nine ethical disclosure dimensions consisting of 80 constructs and 4 assumed determinants of EID among Islamic banks indicated that EID of both countries is low and that independent directors do not affect the level of social disclosure. However, board size, Shari’ah supervisory Board and investment account holders can significantly influence the disclosure level in Islamic banks. Hence, we conclude that our findings are in conflict with main theories such as agency theory, however supports institutional theory. Penerbit Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/10792/1/14160-42999-1-PB.pdf Rashidah Abdul Rahman, and Nur Syatilla Saimi, and Danbatta, Bello Lawal (2016) Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia. Jurnal Pengurusan, 46 . pp. 13-22. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/805
repository_type Digital Repository
institution_category Local University
institution Universiti Kebangasaan Malaysia
building UKM Institutional Repository
collection Online Access
language English
description Islamic banks are banks that are set up to operate within the Islamic business framework that is more equitable and based on socio-economic welfare of the society and the people. In Islamic law on commercial transactions and other related contractual activities (the framework), transparency and adequate disclosure are the fundamental determinants of a successful and peaceful relationship between the contracting parties. This is because the stakeholders of Islamic banks believed that the prescriptions of the framework would be the key determinants of the bank’s Ethical Identity Disclosures (EID). This study aimed at exploring and identifying the practical determinants of EID in Islamic banks. Disclosure information in annual reports (from 2007 to 2011) of 21 Islamic banks operating in Bahrain and Malaysia was gathered and analysed using Ethical Identity Index (EII) and Multiple Regression Analysis (MRA) models. The results of EII and MRA on nine ethical disclosure dimensions consisting of 80 constructs and 4 assumed determinants of EID among Islamic banks indicated that EID of both countries is low and that independent directors do not affect the level of social disclosure. However, board size, Shari’ah supervisory Board and investment account holders can significantly influence the disclosure level in Islamic banks. Hence, we conclude that our findings are in conflict with main theories such as agency theory, however supports institutional theory.
format Article
author Rashidah Abdul Rahman,
Nur Syatilla Saimi,
Danbatta, Bello Lawal
spellingShingle Rashidah Abdul Rahman,
Nur Syatilla Saimi,
Danbatta, Bello Lawal
Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia
author_facet Rashidah Abdul Rahman,
Nur Syatilla Saimi,
Danbatta, Bello Lawal
author_sort Rashidah Abdul Rahman,
title Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia
title_short Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia
title_full Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia
title_fullStr Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia
title_full_unstemmed Determinants of ethical identity disclosure in Islamic banks: an analysis of practices in Bahrain and Malaysia
title_sort determinants of ethical identity disclosure in islamic banks: an analysis of practices in bahrain and malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2016
url http://journalarticle.ukm.my/10792/
http://journalarticle.ukm.my/10792/
http://journalarticle.ukm.my/10792/1/14160-42999-1-PB.pdf
first_indexed 2023-09-18T19:58:27Z
last_indexed 2023-09-18T19:58:27Z
_version_ 1777406687076941824

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