Determinants of voluntary corporate governance disclosure: Evidence from Islamic banks in the Southeast Asian and the Gulf Cooperation Council regions
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We investigate the determinants of voluntary corporate governance disclosure practices of 67 Islamic banks in the Southeast Asian and Gulf Cooperation Council regions. We expect that the risks inherent in Islamic banking will lead to a demand for greater corporate governance disclosures. However, we find that the mean level of voluntary governance disclosure is less than 40 per cent. We provide evidence that stronger corporate governance is associated with a higher level of voluntary corporate governance disclosure. Other factors that influence voluntary governance disclosures are the size of Islamic banks, the level of political and civil repression and the legal system. Our results inform the global debate on the need for corporate governance reform by Islamic banks by providing insights on the part played by corporate governance mechanisms in encouraging enhanced disclosure in the annual reports of Islamic banks.
Journal of Contemporary Accounting and Economics
Banking, Finance and Investment not elsewhere classified