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 datasets relating to Islamic banks from 10 Middle East and North Africa (MENA) countries from 2006 to 2013, our findings are three-fold. 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 RDPs 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.
- Religion and business
- Islamic and National Governance
- Risk Management and Disclosure Practices
- Neo-institutional Theory
- MENA banks
Elamer, A., Ntim, C., & Abdou, H. (2017). Islamic governance, national governance, and bank risk management and disclosure in MENA countries. Business & Society. https://doi.org/10.1177/0007650317746108