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CSR disclosure, corporate governance and firm value: a study on GCC Islamic banks

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This study explores the CSR disclosure practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the period 2010- 2014 and examines the determinants of CSR disclosure and its effects on the firm value. Developing a comprehensive CSR disclosure index based on Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Governance Standard No. 7 guidelines and using content analysis, the study shows a very low level of CSR disclosure among the sample Islamic banks. Again, using corporate governance characteristics to examine the determinants of CSR disclosure and applying the ordinary least square regression, it provides evidence of a significant positive association between board size and CSR disclosure practice in Islamic banks, while negative significant relationship of CEO duality with CSR disclosure, as per expectation. To examine the economic consequences of CSR disclosure, the study documents an inverse performance effect of CSR disclosure, while board size, board composition and CEO duality have significant positive effect on firm value. These results instigate the global debate on the need for corporate governance reform in Islamic banks by providing insights on the role played by corporate governance mechanisms in encouraging and enhancing CSR disclosure practice among Islamic banks. The findings also have important implications for investors, managers, regulatory bodies, policy makers and Islamic banks in the GCC countries.
Original languageEnglish
JournalInternational Journal of Accounting & Information Management
Publication statusAccepted for publication - 18 Mar 2020


  • HUSSAINEY_2020_cright_IJAIM_CSR Disclosure, Corporate Governance and Firm Performance

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    Accepted author manuscript (Post-print), 557 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 1/01/50

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