The impact of AAOIFI governance disclosure on Islamic Banks performance
Research output: Contribution to journal › Article › peer-review
Design/methodology/approach - The OLS regression model was used to test the impact of AAOIFI governance disclosure on the performance of 126 IBs from eight countries that mandatorily adopt the AAOIFI standards for three years (2013–2015). In this regression model, return on asset and return on equity are the dependent variables, while AAOIFI governance disclosure is the independent variable. Corporate governance mechanisms, firm characteristics, year dummy, and country dummy are used as control variables.
Findings - We found an insignificant relationship between AAOIFI governance disclosure and IBs performance.
Research limitations/implications - The study highlighted the implication that the current research may help IBs and encourage them to disclose more information in annual reports, especially those related to AAOIFI governance standards because following good CG leads to good financial performance. The major limitation of the paper is that it is only focused on two measurements of bank performance – ROA and ROE; it would be good to employ other firm performance measures, such as profit margin.
Originality/value - This research provides new empirical evidence on the impact of AAOIFI governance disclosure on IBs performance.
|Number of pages||21|
|Journal||Journal of Financial Reporting and Accounting|
|Early online date||16 Nov 2020|
|Publication status||Early online - 16 Nov 2020|
- HUSSAINEY_2020_cright_The Impact of AAOIFI Governance Disclosure on Islamic Banks Performance
Rights statement: Elgattani, T. and Hussainey, K. (2020), "The impact of AAOIFI governance disclosure on Islamic banks performance", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-03-2020-0053. Copyright © 2020, Emerald Publishing Limited. All rights reserved.
Accepted author manuscript (Post-print), 1.8 MB, PDF document