Corporate Governance Disclosure in the Annual Report: An Exploratory Study on Indonesian Islamic Banks

2011 ◽  
Author(s):  
Salim Darmadi
Keyword(s):  
Corporate Governance ◽  
Exploratory Study ◽  
Annual Report ◽  
Islamic Banks ◽  
Governance Disclosure

Deposits structure, ownership concentration and corporate governance disclosure in GCC Islamic banks

2018 ◽  
Vol 9 (4) ◽  
pp. 587-606 ◽  
Author(s):  
Rihab Grassa
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Far East ◽  
Policy Implications ◽  
Ownership Concentration ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
Transparency And Disclosure ◽  
Governance Disclosure

Purpose This paper aims to assess the effects of deposits structure and ownership structure on the GCC Islamic banks’ corporate governance disclosure (CGD) practices. Design/methodology/approach The study is based on a sample of 38 Islamic banks operating in five Gulf Cooperation Council (GCC) countries, and the authors observed them over the period from 2006 to 2011. The authors used the transparency and disclosure score, developed by Standard & Poor’s (S&P), to identify the sample’s CGD scores. Findings This paper’s findings suggest that the level of CGD is lower for Islamic banks with higher ownership concentration, for levered Islamic banks and for Islamic banks with greater concentration of nonprofit-sharing investment accounts (PSIA) and is higher for Islamic banks with greater concentrations of PSIA; the Islamic bank size; the bank age; listed bank and the country transparency index. By disaggregating the total CGD into the three sub-categories, the authors are able to specify, also, the components of corporate governance (CG) impacted by various determinants. Research limitations/implications This paper is subject to a number of limitations. First, there is manual scoring of annual reports (subjectivity). Second, the research focuses exclusively on the GCC context and excludes the other Middle East, Southeast Asia and Far East countries, where ownership structure and deposits structure might affect CGD differently. Third, the governance score, which is used in this research, is developed by S&P and does not take into account the characteristics of Islamic banks. Practical implications The findings of this paper suggest many policy implications. First, through the optimization of ownership structure, GCC countries’ regulators have to improve the Islamic banking system’s CG mechanisms through the optimization of ownership structure (dispersed ownership) to promote transparency and disclosure. Second, regulators and policymakers should revise guidelines with the main purpose of protecting PSIA’ holders (considered to be minor shareholders without voting power) through promoting disclosure and transparency. Third, the findings can be useful for many international supervisory bodies, like the Islamic Financial Services Board (IFSB) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), in evaluating transparency and disclosure standards. Originality/value This study is expected to be useful for all market participants, namely, investors, financial analysts, managers, marker regulators and many international Islamic supervisory bodies, such as the IFSB and AAOIFI, by providing new requirements on CGD in the GCC region and in better understanding its determinants for Islamic banks in this region.

scholarly journals The impact of AAOIFI governance disclosure on Islamic banks performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tawida Elgattani ◽  
Khaled Hussainey
Keyword(s):  
Corporate Governance ◽  
Regression Model ◽  
Financial Institution ◽  
Ordinary Least Squares ◽  
Annual Reports ◽  
Islamic Banks ◽  
Least Squares Regression ◽  
Content Type ◽  
The Impact ◽  
Governance Disclosure

Purpose This study aims to investigate the impact of the accounting and auditing organisation for Islamic financial institution (AAOIFI) governance disclosure on the performance of Islamic banks (IBs). Design/methodology/approach The ordinary least squares regression model was used to test the impact of AAOIFI governance disclosure on the performance of 126 IBs from 8 countries that mandatorily adopt the AAOIFI standards for three years (2013–2015). In this regression model, return on asset (ROA) and return on equity (ROE) 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 This paper found an insignificant relationship between AAOIFI governance disclosure and IBs performance. Research limitations/implications This 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 corporate governance leads to good financial performance. The major limitation of the paper is that it is only focussed on two measurements of bank performance – ROA and ROE; it would be good to use other firm performance measures, such as profit margin. Originality/value This study provides new empirical evidence on the impact of AAOIFI governance disclosure on IBs performance.

scholarly journals COMPARISON OF GOOD CORPORATE GOVERNANCE DISCLOSURE AND ACHIEVEMENT OF THE MAQASHID SHARIAH BETWEEN INDONESIAN AND MALAYSIAN ISLAMIC BANKS

2020 ◽  
Vol 3 (01) ◽  
pp. 63
Author(s):  
Ima Maspupah ◽  
Shofia Mauizotun Hasanah
Keyword(s):  
Corporate Governance ◽  
Annual Reports ◽  
Measuring Instruments ◽  
Islamic Banks ◽  
Business Organizations ◽  
Banking History ◽  
Good Corporate Governance ◽  
Index Approach ◽  
The Difference ◽  
Governance Disclosure

<p><em>As part of the corporate organization, Islamic banks are encouraged to create good performance. But in the benchmark, there are still Islamic banks that assess the performance of banks using conventional measuring instruments. So in this study using maqashid index approach to measure the performance of Islamic banks. In addition to creating good performance, the obligations of business organizations are also to take part in activities aimed at protecting and improving the welfare of society as a whole and creating good corporate governance. banks in Indonesia have poor corporate governance rankings compared to neighboring countries such as Malaysia. So the purpose of this comparison study, it is hoped that there will be some advantages between them that can be identified. The method used in this research is quantitative method by using Mann-Whitney test. The data used are annual reports from three Indonesian islamic banks and three Malaysian Islamic banks. The results obtained no significant differences in Good Corporate Governance between Indonesian and Malaysian Islamic banks. While the achievement of maqashid shariah both have differences. This is because, firstly, the difference between banking history and the second, the difference of implementation of Shariah compliance in both countries.</em><em></em></p><strong><em>Keywords:</em></strong><em> Good Corporate Governance, Islamic Banking, Maqashid Shariah</em>

scholarly journals THE IMPACT OF ISLAMIC CORPORATE GOVERNANCE DISCLOSURE, ISLAMIC INTELLECTUAL CAPITAL, ZAKAT, FINANCIAL PERFORMANCE (SCnP Model) & ISLAMIC ETHICAL IDENTITY TO SUSTAINABLE BUSINESS

2021 ◽  
Vol 8 (2) ◽  
pp. 171
Author(s):  
Yulinda Putri Prativi ◽  
Citra Sukmadilaga ◽  
Cupian Cupian
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Islamic Banks ◽  
Corporate Disclosure ◽  
Sustainable Business ◽  
Ethical Identity ◽  
The Impact ◽  
Governance Disclosure

ABSTRAKTujuan dari penelitian ini adalah untuk menganalisis dampak Islamic Corporate Governance disclosure, Islamic Intellectual Capital, Zakat, Kinerja Keuangan (SCnP Model), dan Islamic Ethical Identity terhadap Sustainable Business. Penelitian ini menggunakan pendekatan kuantitatif. Data yang dipakai ialah data sekunder dengan teknik pengumpulan data content analysis terhadap annual report 5 bank syariah periode 2015-2019 yang terdapat di negara ASEAN, GCC & MESA. Metode analisis data pada penelitian ini menggunakan regresi linier berganda. Hasil penelitian menunjukkan bahwa (1) Islamic Corporate Disclosure berpengaruh terhadap Sustainable Business, (2) Islamic Intellectual Capital berpengaruh terhadap Sustainable Business, (3) Zakat tidak berpengaruh terhadap Sustainable Business, (4) Kinerja Keuangan (SCnP Model) tidak berpengaruh terhadap Sustainable Business, (5) Islamic Ethical Identity tidak berpengaruh terhadap Sustainable Business. Penelitian ini diharapkan dapat memberikan masukan bagi entitas syariah terutama bank syariah dalam pengembangan aspek kinerja keuangan dan non keuangan serta mengi ngatkan kembali akan  pentingnya konsep sustainable terutama kewajiban dalam penyusunan sustainability reporting.Kata Kunci: Islamic Corporate Governance, Islamic Intellectual Capital, Zakat, Islamic Ethical Identity, Sustainable Business. ABSTRACTThe purpose of this study is to analyze the impact of Islamic Corporate Governance disclosure, Islamic Intellectual Capital, Zakat, Financial Performance (SCnP Model), and Islamic Ethical Identity on Sustainable Business. This study uses a quantitative approach. The data used is secondary data with content analysis data collection techniques on the annual reports of 5 Islamic banks for the 2015-2019 period in ASEAN, GCC & MESA countries. Methods of data analysis in this study using multiple linear regression. The results showed that (1) Islamic Corporate Disclosure has an affects to Sustainable Business, (2) Islamic Intellectual Capital has an effect on Sustainable Business, (3) Zakat has no effect on Sustainable Business, (4) Financial Performance (SCnP Model) has no effect on Sustainable Business , (5) Islamic Ethical Identity has no effect on Sustainable Business. This research is expected to provide input for Islamic entities, especially Islamic banks in developing aspects of financial and non-financial performance as well as reminders of the importance of the concept of sustainability, especially the obligations in preparing sustainability reporting.Keyword: Islamic Corporate Governance, Islamic Intellectual Capital, Zakat, Islamic Ethical Identity, Sustainable Business.

Voluntary corporate governance disclosure and bank performance: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haitham Nobanee ◽  
Nejla Ould Daoud Ellili
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Dynamic Panel Data ◽  
Annual Reports ◽  
Bank Performance ◽  
Islamic Banks ◽  
Dynamic Panel ◽  
Content Type ◽  
Governance Disclosure ◽  
Conventional And Islamic Banks

Purpose This study aims to explore the extent of voluntary corporate governance disclosure in the annual reports of banks in the UAE, operating in an emerging economy in the Gulf Cooperation Council region. It also examines the effect of this non-financial disclosure on bank performance by differentiating conventional and Islamic banks. Design/methodology/approach This study applies content analysis to explore the extent of voluntary corporate governance disclosure using data collected from the annual reports of all the banks traded on the UAE financial markets from 2003 through 2020. It further examines the potential effect of voluntary disclosure on bank performance using dynamic panel data regressions. Findings The results indicate a low level of voluntary corporate governance disclosure in the annual reports for most disclosure indices. However, conventional and Islamic banks do not differ significantly. Additionally, the results of the robust dynamic panel data from the two-step generalized method of moments system estimation confirm that voluntary corporate governance disclosure does not affect bank performance significantly. Practical implications The findings of this study would benefit the central bank and lawmakers in the UAE in developing a framework for appropriate voluntary disclosure and enhancing the corporate governance framework to improve the quality of annual reports. Originality/value This study contributes to the literature on the extent of corporate governance disclosure, as well as its association with bank performance in an emerging economy by differentiating between conventional and Islamic banks.

scholarly journals The impact of the mandatory corporate governance disclosures on the banking growth in UAE: Islamic versus conventional banks

2014 ◽  
Vol 12 (1) ◽  
pp. 717-722 ◽  
Author(s):  
Haitham Nobanee ◽  
Nejla Ould Daoud Ellili
Keyword(s):  
Corporate Governance ◽  
Financial Markets ◽  
Annual Data ◽  
Islamic Banks ◽  
Empirical Results ◽  
Conventional Banks ◽  
The Impact ◽  
Governance Disclosure

The aim of this paper is to measure the degree of mandatory corporate governance disclosure and examine its impact on the bank’s growth using annual data for listed banks on the UAE financial markets during the period 2003-2013. Our empirical results show that the degree of mandatory corporate governance disclosure of conventional banks is significantly higher than the Islamic banks. In addition, the degree of mandatory corporate governance disclosure is significantly and positively related to the growth of deposits for both Islamic and conventional UAE listed banks

scholarly journals Analisis Pengungkapan Nilai Islam Dalam Laporan Tahunan Bank Syariah di Indonesia

2019 ◽  
Vol 1 (1) ◽  
pp. 5-28
Author(s):  
Muhammad Praditya Mas’ud
Keyword(s):  
Exploratory Study ◽  
Annual Report ◽  
Analytical Tool ◽  
Annual Reports ◽  
Islamic Banks ◽  
Research Theme ◽  
Islamic Values

This research is an exploratory study aimed to assess the degree of suitability of thedisclosure information of Islamic values in the annual report of Islamic Banks (BUS)with items that duly disclosed. This research using 2010 BUS annual report. In order tomake this result of this research can be compared with other similar researches, instruction encoding, which items should be disclosed or items that duly disclosed, adaptedfrom two previous studies which have similarity with this research theme, Haniffa &Hudaib (2004) and Prasetyaningsih & Prakosa (2010). This study uses content analysisas an analytical tool, which makes a set of related-specific text into analysis unit. Theresults showed that some of the new BUS emerged in 2010 have not been optimallydisclose Islamic values in their annual reports. But according to the overall score, all ofBUS annual report have disclosed enough information about Islamic values that shouldbe disclosed in annual reports.

scholarly journals Pengaruh Pengungkapan Tata Kelola Perusahaan terhadap Akurasi Harga Saham pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2017

2019 ◽  
Vol 3 (2) ◽  
pp. 51
Author(s):  
Budi Harsono ◽  
Edwin Saputra
Keyword(s):  
Corporate Governance ◽  
Annual Report ◽  
Secondary Data ◽  
Share Price ◽  
Financial Statement ◽  
Stock Exchanges ◽  
Independent Variables ◽  
Report Data ◽  
Positive Effect ◽  
Governance Disclosure

This study was conducted to analyze the effect of corporate governance disclosure to Share Price Accuracy. The variables of corporate governance disclosure in this study are divided into two namely Mandatory Corporate Governance Disclosure and Voluntary Corporate Governance Disclosure. The data obtained in this research is secondary data. The Secondary data used are financial statement data and company annual report data. Secondary data can be downloaded from Indonesian stock exchanges official website via www.idx.co.id. The number of companies used as research samples are 393 companies. The study period began from 2013 to 2017. The data obtained were as many as 1965 data. The conclusion of this study prove that both of the independent variables have a significant effect to Share Price Accuracy.Mandatory Corporate Governance Disclosure has a significant positive effect to the Share Price Accuracy partially.Voluntary Corporate Governance disclosure also has significant effect to the Share Price Accuracy partially.

scholarly journals Analisis Pengukuran Sharia Compliance dalam Pelaksanaan Good Corporate Governance Bank Syariah di Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 107-126 ◽  
Author(s):  
Dedhi Ana Mey Saramawati ◽  
Ahmad Tarmizi Lubis
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Exploratory Study ◽  
Supervisory Board ◽  
Financial Statement ◽  
Reporting Standards ◽  
Islamic Banks ◽  
Unit Of Analysis ◽  
Analysis Methodology ◽  
Good Corporate Governance

This research is an exploratory study aimed to measure and assess sharia compliance inthe framework of implementation of Good Corporate Governance in Sharia BankingIndonesia based an indicators used. That the results of this study can be compared byresearch of other similar, used indicators is an indicator that has been adapted from twoearlier studies i.e Thea Vinnicombe (2010) with title “ AAOIFI Reporting Standards :Measuring Compliance” and Sepky Mardian (2011) “ Study Exploration of DisclosureApplication of Sharia Compliance in Islamic Banks”. This research using 4 (four) indicators are : (i) Sharia Supervisory Board, which is a key player in Sharia Banking, (ii) Murabaha, is one contract that dominates Sharia Banking assets, (iii) zakah, an appraiser social function of Sharia Banks, and (iv) Mudharaba, which is a profit loss sharing contract with the identity of Sharia Banks. This research uses content analysis methodology, namely to make the sets specific text as the unit of analysis to figure out the purpose of the disclosure to be assessed in accordance with sharia compliance. Theannual reports are used GCG Implementation report and Financial Statement period2011. The results of this research indicate that level of Sharia Compliance Sharia Banking in Indonesia has been quite adequate with a percentage exceeding 50%, and in general, the tenth of Sharia Banking has been disclosed sharia compliance in the implementation of GCG.

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