This paper examines the effect of sharia; social and financial (SSF) disclosure on stakeholders’ loyalty towards Islamic banks. It also examines to what extent trust and satisfaction mediate this effect. It uses data collected from 600 respondents to survey questionnaires disseminated to stakeholders from 15 countries dealing with Islamic banks. Structural equation modeling (SEM) is used with a partial least squares (PLS) approach to test the research hypotheses. The results indicate that there is a significant association of disclosure on stakeholders’ trust, satisfaction, and loyalty. The results also indicate that there is a partial mediating of trust and satisfaction in the relationship between disclosure and loyalty. This paper is one of the first studies examining the effect of disclosure on stakeholders’ loyalty. We offer novel findings which have theoretical and practical implications for Islamic banks and their stakeholders.
- Islamic banks
- external stakeholders
- Structural Equation Modelling