Shariah Supervisory Board Report (SSBR) in Islamic banks: An experimental study of investors’ perception and behavior
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 24 January 2018
Issue publication date: 5 June 2018
Abstract
Purpose
The primary purpose of this study is to determine the impact of information ordering in Shariah Supervisory Board Report (SSBR) on investors’ behavior and perception about the performance of Islamic bank in terms of Shariah compliance and other conventional parameters.
Design/methodology/approach
The study used the belief adjustment model to evaluate the desired effects of ordering positive and negative information (if any) in SSBR of an Islamic bank. This study extends the previous literature on information ordering as a pioneer experimental study in emerging economies.
Findings
Evidence shows that investors and technical users of performance reports consider SSBR as significant for financial and investment decisions from the Islamic perspective. The results indicate that the primacy effect does exist and is statistically significant.
Practical implications
The SSBR provides the management with an excellent opportunity to communicate and convince the investors about Shariah compliance features of an Islamic bank. Additionally, it also highlights the functional use of impression management to manipulate the investor’ behavior and perception.
Originality/value
For the first time, this study specifically investigates the effect of conscious information ordering in SSBR of Islamic banks on investors perceptions and behaviors.
Keywords
Citation
Rafay, A. and Farid, S. (2018), "
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited