Nexus between corporate governance and FinTech disclosure: a comparative study between conventional and Islamic banks

What is it about?

The extant literature witnessed ample empirical studies regarding relationships between FinTech implications and banks’ performance, both conventional and Islamic banks. Yet, the influence of corporate governance on FinTech disclosure has not been widely empirically explored. This study investigates the impact of corporate governance on FinTech disclosure levels in both conventional and Islamic banks. The data underpinning this study is based on a sample from Jordan over the period (2015-2022). The study’s findings demonstrate that corporate governance mechanisms affect Fintech disclosure in both conventional and Islamic banks. Additionally, the findings show that the level of FinTech disclosure is the same in both Islamic and conventional banks. The findings indicate that decision-makers are aware of the importance of business model transformation towards FinTech adoption regardless of the context of corporate governance structure (Islamic governance or conventional governance). To the best of our knowledge, this study is the first to offer a comparative study between the levels of FinTech disclosure between Islamic and conventional banks and investigate the influence of corporate governance on FinTech disclosure. The findings of this study add to the extant literature on the relationship between corporate governance and FinTech disclosure. The findings of this study have theoretical and managerial implications for decision-makers, standards setters and other stakeholders.

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