Islamic Governance, National Governance, and Bank Risk Management and Disclosure in MENA Countries

Business & Society, Forthcoming

43 Pages Posted: 14 Sep 2017 Last revised: 20 Oct 2017

See all articles by Ahmed A. Elamer

Ahmed A. Elamer

Brunel University London - Brunel Business School; Department of Accounting, Faculty of Commerce, Mansoura University

Collins G. Ntim

University of Southampton Business School, UK; University of Southampton

Hussein Abdou

The Lancashire School of Business & Enterprise; Department of Management, Faculty of Commerce, Mansoura University

Date Written: September 12, 2017

Abstract

We examine the relationships among religious governance, especially Islamic governance quality (IGQ), national governance quality (NGQ), and risk management and disclosure practices (RDPs), and consequently ascertain whether NGQ has a moderating influence on the IGQ-RDPs nexus. Using one of the largest datasets relating to Islamic banks from 10 Middle East and North Africa (MENA) countries from 2006 to 2013, our findings are three-fold. First, we find that RDPs are higher in banks with higher IGQ. Second, we find that RDPs are higher in banks from countries with higher NGQ. Finally, we find that NGQ has a moderating effect on the IGQ-RDPs nexus. Our findings are robust to alternative RDPs measures and estimation techniques. These results imply that the quality of disclosure depends on the nature of the macro-social level factors, such as religion that have remained largely unexplored in business and society research, and therefore have important implications for policy-makers.

Keywords: Religion and business, Islamic and National Governance; Risk Management and Disclosure Practices; Neo-institutional Theory; MENA banks

JEL Classification: G21, G32, G34, G38, M48

Suggested Citation

Elamer, Ahmed Ahmed and Ntim, Collins G. and Abdou, Hussein, Islamic Governance, National Governance, and Bank Risk Management and Disclosure in MENA Countries (September 12, 2017). Business & Society, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3035856

Ahmed Ahmed Elamer

Brunel University London - Brunel Business School ( email )

Kingston Lane
Eastern Gateway Building
Uxbridge, Middlesex UB8 3PH
United Kingdom

Department of Accounting, Faculty of Commerce, Mansoura University ( email )

Faculty of Commerce, Mansoura University
Elgomhouria St.
Mansoura, Mansoura 35516
Egypt

Collins G. Ntim (Contact Author)

University of Southampton Business School, UK ( email )

Southampton Business School
Highfield
Southampton, England SO17 IBJ
United Kingdom
+44 (0) 238059 4285 (Phone)
+44 (0) 238059 3844 (Fax)

HOME PAGE: http://www.southampton.ac.uk/business-school/about/staff/cgn1n11.page

University of Southampton ( email )

Southampton, SO17 1BJ
United Kingdom

Hussein Abdou

The Lancashire School of Business & Enterprise ( email )

The Lancashire Law School
Corporation Street
Preston, PR1 2HE
United Kingdom
00441772894700 (Phone)

Department of Management, Faculty of Commerce, Mansoura University ( email )

Mansoura, 35516
Egypt

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