Islamic governance, national governance, and bank risk management and disclosure in MENA countries
Islamic governance, national governance, and bank risk management and disclosure in MENA countries
We examine the relationships among religious governance, especially Islamic governance quality (IGQ), national governance quality (NGQ), and risk management and disclosure practices (RDPs), and consequently ascertain whether NGQ has a moderating influence on the IGQ–RDPs nexus. Using one of the largest data sets relating to Islamic banks from 10 Middle East and North Africa (MENA) countries from 2006 to 2013, our findings are threefold. First, we find that RDPs are higher in banks with higher IGQ. Second, we find that RDPs are higher in banks from countries with higher NGQ. Finally, we find that NGQ has a moderating effect on the IGQ–RDPs nexus. Our findings are robust to alternative RDP measures and estimation techniques. These results imply that the quality of disclosure depends on the nature of the macro-social-level factors, such as religion that have remained largely unexplored in business and society research, and, therefore, have important implications for policy makers.
Islamic and National Governance, MENA banks, Neo-institutional Theory, Religion and business, Risk Management and Disclosure Practices
914-955
Elamer, Ahmed A.
41f0a000-ef97-4e6b-b741-d755def01823
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Abdou, Hussein A.
c5679c57-2de9-452f-8434-1a0452563e0a
1 May 2020
Elamer, Ahmed A.
41f0a000-ef97-4e6b-b741-d755def01823
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Abdou, Hussein A.
c5679c57-2de9-452f-8434-1a0452563e0a
Elamer, Ahmed A., Ntim, Collins G. and Abdou, Hussein A.
(2020)
Islamic governance, national governance, and bank risk management and disclosure in MENA countries.
Business & Society, 59 (5), .
(doi:10.1177/0007650317746108).
Abstract
We examine the relationships among religious governance, especially Islamic governance quality (IGQ), national governance quality (NGQ), and risk management and disclosure practices (RDPs), and consequently ascertain whether NGQ has a moderating influence on the IGQ–RDPs nexus. Using one of the largest data sets relating to Islamic banks from 10 Middle East and North Africa (MENA) countries from 2006 to 2013, our findings are threefold. First, we find that RDPs are higher in banks with higher IGQ. Second, we find that RDPs are higher in banks from countries with higher NGQ. Finally, we find that NGQ has a moderating effect on the IGQ–RDPs nexus. Our findings are robust to alternative RDP measures and estimation techniques. These results imply that the quality of disclosure depends on the nature of the macro-social-level factors, such as religion that have remained largely unexplored in business and society research, and, therefore, have important implications for policy makers.
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Accepted/In Press date: 9 December 2017
e-pub ahead of print date: 9 December 2017
Published date: 1 May 2020
Additional Information:
Funding Information:
We would like to thank the editors (Professor Harry Van Buren, Professor Jawad Syed, and Dr Raza Mir) and three anonymous referees for very helpful comments and suggestions. We would also like to acknowledge constructive and useful comments received from the participants at the 2017 Business & Society Manuscript Development Workshop at Brigham Young University, Provo, Utah, United States, and 2017 British Accounting and Finance Association Annual Conference in Edinburgh, United Kingdom. The authors received no financial support for the research, authorship, and/or publication of this article.
Publisher Copyright:
© The Author(s) 2017.
Keywords:
Islamic and National Governance, MENA banks, Neo-institutional Theory, Religion and business, Risk Management and Disclosure Practices
Identifiers
Local EPrints ID: 414044
URI: http://eprints.soton.ac.uk/id/eprint/414044
ISSN: 0007-6503
PURE UUID: 422e3f8c-0d6a-47da-b50a-1ebc2c21da9d
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Date deposited: 13 Sep 2017 16:31
Last modified: 06 Jun 2024 04:10
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Author:
Ahmed A. Elamer
Author:
Hussein A. Abdou
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