What is it about?

This study examines the level of Shariah governance disclosure among Islamic banks in Malaysia and the Gulf Cooperation Council (GCC) countries (i.e., Kuwait, Bahrain, United Arab Emirates, Qatar, Oman, and Saudi Arabia). On top of that, the effect of Shariah governance disclosure on Islamic banks‘ financial performance is investigated. The results of the content analysis revealed that the level of Shariah governance disclosure among Malaysian Islamic banks has been more pronounced than in the GCC countries. Additionally, the multiple regression analysis results specified that of the five Shariah governance disclosure mechanisms, the Shariah committee emerged as the strongest determinant in the financial performance of the Islamic banks, followed by transparency and disclosure. The empirical findings are vital for serving as a guideline for Islamic banks in Malaysia and the GCC countries to disclose their practice of Shariah governance and gain empirical insights into its effect on firms’ financial performance. Following that, Islamic banks would improve their accounting practices while adhering to Shariah principles, strengthen internal controls, and boost their brand reputation.

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This page is a summary of: Shariah governance disclosure and its effect on Islamic banks' financial performance: evidence from Malaysia and GCC countries, Journal of Islamic Accounting and Business Research, May 2023, Emerald,
DOI: 10.1108/jiabr-08-2021-0235.
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