EconPapers    
Economics at your fingertips  
 

What drives risk disclosure in Islamic and conventional banks? An international comparison

Rihab Grassa, Nejia Moumen and Khaled Hussainey

International Journal of Finance & Economics, 2021, vol. 26, issue 4, 6338-6361

Abstract: This paper examines and compares the relationship between risk disclosure and corporate attributes in Islamic and conventional banks. Using a comprehensive risk disclosure index covering nine dimensions, we analyse the level of risk‐related disclosure (RRD) in a sample of 72 Islamic banks and 97 conventional banks across 11 countries. The RRD index shows that Islamic banks disclose less information about risk comparing to conventional banks. Listed banks, larger banks and aged bank disclose more information about risk than the others. Block holders, foreign ownership and board size affect negatively risk disclosure. However, board independence and the percentage of foreign directors in the board affect positively risk disclosure. Moreover, banks with higher Tier 1 ratio disclose less information about risk. Our results encourages regulators to improve corporate governance mechanisms in their banking systems through the optimization of ownership structure (dispersed ownership) and the board's composition in order to promote higher level of transparency and RRD.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1002/ijfe.2122

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:wly:ijfiec:v:26:y:2021:i:4:p:6338-6361

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-10-23
Handle: RePEc:wly:ijfiec:v:26:y:2021:i:4:p:6338-6361