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Determinants of compliance with AAOIFI standards by Islamic banks

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Determinants of compliance with AAOIFI standards by Islamic banks. / El-halaby, Sherif; Hussainey, Khaled.

In: International Journal of Islamic and Middle Eastern Finance and Management, Vol. 9, No. 1, 18.04.2016, p. 143-168.

Research output: Contribution to journalArticle

Harvard

El-halaby, S & Hussainey, K 2016, 'Determinants of compliance with AAOIFI standards by Islamic banks', International Journal of Islamic and Middle Eastern Finance and Management, vol. 9, no. 1, pp. 143-168. https://doi.org/10.1108/IMEFM-06-2015-0074

APA

El-halaby, S., & Hussainey, K. (2016). Determinants of compliance with AAOIFI standards by Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 9(1), 143-168. https://doi.org/10.1108/IMEFM-06-2015-0074

Vancouver

El-halaby S, Hussainey K. Determinants of compliance with AAOIFI standards by Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management. 2016 Apr 18;9(1):143-168. https://doi.org/10.1108/IMEFM-06-2015-0074

Author

El-halaby, Sherif ; Hussainey, Khaled. / Determinants of compliance with AAOIFI standards by Islamic banks. In: International Journal of Islamic and Middle Eastern Finance and Management. 2016 ; Vol. 9, No. 1. pp. 143-168.

Bibtex

@article{3d8b86bd9a354db08c0ff046edd70142,
title = "Determinants of compliance with AAOIFI standards by Islamic banks",
abstract = "Purpose: We explore the level and determinants of compliance with Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) financial and governance standards by Islamic banks (IBs).Methodology: Our sample consists of 43 IBs across 8 countries. We use ordinary least squares regression analyses to examine the impact of Bank-specific characteristics and corporate governance mechanisms concerned with Board of Directors (BOD) and Sharia Supervisory Board (SSB) on levels of compliance with AAOIFI standards.Findings: We find that the average compliance level based on AAOIFI standards concerning the Sharia Supervisory Board Report (SSBR) is 68%; corporate social responsibility report (CSRR) is 27% and presentation of financial statements (FS) is 73%. The aggregate disclosure based on the 3 indices is 56%. The analysis also shows that size, existing Sharia auditing department, age, and corporate governance of SSB are the main determinants of compliance levels.Originality: he determinants of compliance with AAOIFI standards for IBs around the world not been explored before and, therefore, this paper is the first of its kind to this issue.",
keywords = "determinants, Islamic banking, AAOIFI standards, compliance and non-compliance, cross-country",
author = "Sherif El-halaby and Khaled Hussainey",
note = "EMBARGO 24 MTHS This article is {\textcopyright}Emerald Group Publishing and permission has been granted for this version to appear here http://eprints.port.ac.uk. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.",
year = "2016",
month = apr,
day = "18",
doi = "10.1108/IMEFM-06-2015-0074",
language = "English",
volume = "9",
pages = "143--168",
journal = "International Journal of Islamic and Middle Eastern Finance and Management",
issn = "1753-8394",
publisher = "Emerald Group Publishing Ltd.",
number = "1",

}

RIS

TY - JOUR

T1 - Determinants of compliance with AAOIFI standards by Islamic banks

AU - El-halaby, Sherif

AU - Hussainey, Khaled

N1 - EMBARGO 24 MTHS This article is ©Emerald Group Publishing and permission has been granted for this version to appear here http://eprints.port.ac.uk. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.

PY - 2016/4/18

Y1 - 2016/4/18

N2 - Purpose: We explore the level and determinants of compliance with Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) financial and governance standards by Islamic banks (IBs).Methodology: Our sample consists of 43 IBs across 8 countries. We use ordinary least squares regression analyses to examine the impact of Bank-specific characteristics and corporate governance mechanisms concerned with Board of Directors (BOD) and Sharia Supervisory Board (SSB) on levels of compliance with AAOIFI standards.Findings: We find that the average compliance level based on AAOIFI standards concerning the Sharia Supervisory Board Report (SSBR) is 68%; corporate social responsibility report (CSRR) is 27% and presentation of financial statements (FS) is 73%. The aggregate disclosure based on the 3 indices is 56%. The analysis also shows that size, existing Sharia auditing department, age, and corporate governance of SSB are the main determinants of compliance levels.Originality: he determinants of compliance with AAOIFI standards for IBs around the world not been explored before and, therefore, this paper is the first of its kind to this issue.

AB - Purpose: We explore the level and determinants of compliance with Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) financial and governance standards by Islamic banks (IBs).Methodology: Our sample consists of 43 IBs across 8 countries. We use ordinary least squares regression analyses to examine the impact of Bank-specific characteristics and corporate governance mechanisms concerned with Board of Directors (BOD) and Sharia Supervisory Board (SSB) on levels of compliance with AAOIFI standards.Findings: We find that the average compliance level based on AAOIFI standards concerning the Sharia Supervisory Board Report (SSBR) is 68%; corporate social responsibility report (CSRR) is 27% and presentation of financial statements (FS) is 73%. The aggregate disclosure based on the 3 indices is 56%. The analysis also shows that size, existing Sharia auditing department, age, and corporate governance of SSB are the main determinants of compliance levels.Originality: he determinants of compliance with AAOIFI standards for IBs around the world not been explored before and, therefore, this paper is the first of its kind to this issue.

KW - determinants

KW - Islamic banking

KW - AAOIFI standards

KW - compliance and non-compliance

KW - cross-country

U2 - 10.1108/IMEFM-06-2015-0074

DO - 10.1108/IMEFM-06-2015-0074

M3 - Article

VL - 9

SP - 143

EP - 168

JO - International Journal of Islamic and Middle Eastern Finance and Management

JF - International Journal of Islamic and Middle Eastern Finance and Management

SN - 1753-8394

IS - 1

ER -

ID: 4585373