Islamic governance, national governance, and bank risk management and disclosure in MENA countries

Ahmed Elamer, Collins Ntim, Hussein Abdou

Research output: Research - peer-reviewArticle

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 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.
LanguageEnglish
Number of pages44
JournalBusiness & Society
Early online date9 Dec 2017
DOIs
StateE-pub ahead of print - 9 Dec 2017

Fingerprint

Middle East and North Africa
Risk management
Governance
Risk disclosure
Bank risk
Moderating effect
Factors
Politicians
Quality management
Business and society
Disclosure
Islamic financial institutions

Keywords

  • Religion and business
  • Islamic and National Governance
  • Risk Management and Disclosure Practices
  • Neo-institutional Theory
  • MENA banks

Cite this

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Islamic governance, national governance, and bank risk management and disclosure in MENA countries. / Elamer, Ahmed; Ntim, Collins; Abdou, Hussein .

In: Business & Society, 09.12.2017.

Research output: Research - peer-reviewArticle

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