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

Ahmed A. Elamer, Collins G. Ntim, Hussein A. Abdou

Research output: Contribution to conferencePaper

Abstract

This paper examines the relationships among religious governance, especially Islamic governance quality (IGQ), national governance quality (NGQ), and risk management and disclosure practices (RDPs); and consequently ascertains 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 from countries with higher NGQ. Second, the results also show that IGQ is positively related to RDPs. Finally, we find evidence that suggests that NGQ has a moderating effect on the IGQ-RDPs nexus. These results are consistent with the predictions of our multi-theoretical framework that incorporates insights from agency, signalling, legitimacy, institutional, and resources dependence theories. Our findings also are robust to alternative calculation procedures for the RDPs and to alternative estimation techniques. These results confirm the notion that the disclosure quality depends on the nature of the macro-level factors, such as religion and national governance that have remained unexplored in business and society research, and therefore have important implications for policy-makers.
Original languageEnglish
Publication statusPublished - 10 Apr 2017
EventBAFA Annual Conference 2017 - Heriot Watt University, Edinburgh, United Kingdom
Duration: 10 Apr 201712 Apr 2017
http://bafa.ac.uk/events/events-past/annual-conference-2017.html (Conference website)

Conference

ConferenceBAFA Annual Conference 2017
CountryUnited Kingdom
CityEdinburgh
Period10/04/1712/04/17
Internet address

Fingerprint

Bank risk
Risk disclosure
Middle East and North Africa
Risk management
Governance
Islamic financial institutions
Resource dependence theory
Moderating effect
Business and society
Legitimacy
Factors
Disclosure quality
Quality management
Prediction
Theoretical framework
Politicians

Cite this

Elamer, A. A., Ntim, C. G., & Abdou, H. A. (2017). Islamic governance, national governance, and bank risk management and disclosure in MENA countries. Paper presented at BAFA Annual Conference 2017, Edinburgh, United Kingdom.
Elamer, Ahmed A. ; Ntim, Collins G. ; Abdou, Hussein A. . / Islamic governance, national governance, and bank risk management and disclosure in MENA countries. Paper presented at BAFA Annual Conference 2017, Edinburgh, United Kingdom.
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Elamer, AA, Ntim, CG & Abdou, HA 2017, 'Islamic governance, national governance, and bank risk management and disclosure in MENA countries' Paper presented at BAFA Annual Conference 2017, Edinburgh, United Kingdom, 10/04/17 - 12/04/17, .

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

2017. Paper presented at BAFA Annual Conference 2017, Edinburgh, United Kingdom.

Research output: Contribution to conferencePaper

TY - CONF

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AU - Ntim, Collins G.

AU - Abdou, Hussein A.

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AB - This paper examines the relationships among religious governance, especially Islamic governance quality (IGQ), national governance quality (NGQ), and risk management and disclosure practices (RDPs); and consequently ascertains 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 from countries with higher NGQ. Second, the results also show that IGQ is positively related to RDPs. Finally, we find evidence that suggests that NGQ has a moderating effect on the IGQ-RDPs nexus. These results are consistent with the predictions of our multi-theoretical framework that incorporates insights from agency, signalling, legitimacy, institutional, and resources dependence theories. Our findings also are robust to alternative calculation procedures for the RDPs and to alternative estimation techniques. These results confirm the notion that the disclosure quality depends on the nature of the macro-level factors, such as religion and national governance that have remained unexplored in business and society research, and therefore have important implications for policy-makers.

M3 - Paper

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Elamer AA, Ntim CG, Abdou HA. Islamic governance, national governance, and bank risk management and disclosure in MENA countries. 2017. Paper presented at BAFA Annual Conference 2017, Edinburgh, United Kingdom.