The determinants of AAOIFI governance disclosure in Islamic banks
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 28 January 2020
Issue publication date: 23 March 2020
Abstract
Purpose
The purpose of this study is to investigate the influence of corporate governance mechanisms on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) governance disclosure in Islamic Banks.
Design/methodology/approach
To test the research hypotheses, the authors created a comprehensive AAOIFI governance disclosure index and used regression analysis for a sample of Islamic banks for the financial years within the period 2013-2015.
Findings
The authors found that audit committee size is the main determinant of the AAOIFI governance disclosure.
Research limitations/implications
This study has a number of limitations that could be taken as avenues for a future study such as, the study used the six variables of CG and the four variables of firm characteristics, based on available data. This research is limited to just Islamic banks.
Originality/value
The research contributes to Islamic accounting literature by identifying the driver for the AAOIFI governance disclosure for Islamic banks that mandatorily adopt AAOIFI standards.
Keywords
Citation
Elgattani, T. and Hussainey, K. (2020), "The determinants of AAOIFI governance disclosure in Islamic banks", Journal of Financial Reporting and Accounting, Vol. 18 No. 1, pp. 1-18. https://doi.org/10.1108/JFRA-03-2019-0040
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited