Corporate governance and Islamic bank accountability based on disclosure—a study on Islamic banks in Indonesia

Hasan Mukhibad, Prabowo Yudo Jayanto, Trisni Suryarini and Bayu Bagas Hapsoro

Cogent Business & Management, 2022, vol. 9, issue 1, 2080151

Abstract: Shariah principles used as the primary basis for bank operations emphasize information disclosure as manager accountability to stakeholders. This form of accountability can be presented by presenting broader information disclosure, i.e., the disclosure of information on social, finance, and shariah compliance performance. We expand the disclosure, which is not limited to the disclosure of Corporate Social Responsibility (CSR). This study aims to examine the effect of the Board of Directors (BOD) and Shariah Supervisory Board (SSB) on financial, social, and shariah disclosure. The sample of this study is Islamic commercial banks in Indonesia, totaling 14 banks with an observation period of 11 years (2010–2020). The content analysis measured disclosure data and further analyzed using the fixed effect or random effect and the generalized method of moments (GMM) to overcome the endogeneity problem. We found that BOD and SSB education in finance/accounting can improve disclosure. However, the number of SSBs can reduce disclosure. The BOD and SSB play a more significant role than others in increasing shariah disclosure regarding sub-disclosure. The implication of this study is the importance of financial/accounting expertise for a BOD and SSB that will impact performance effectiveness and subsequently reduce information asymmetry.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2022.2080151 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:9:y:2022:i:1:p:2080151

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2022.2080151

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().