The Impact of Multi-Layer Governance on Bank Risk Disclosure in Emerging Markets: The Case of Middle East and North Africa

Elamer, A.A., Ntim, C.G., Abdou, H.A., Zalata, A., & Elmagrhi, M. (2019) ‘The Impact of Multi-Layer Governance on Bank Risk Disclosure in Emerging Markets: The Case of Middle East and North Africa’, Accounting Forum, Forthcoming (Accepted 14th January 2019).

46 Pages Posted: 18 Jan 2019

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

Alaa Zalata

University of Southampton - Southampton Business School

Mohamed Elmagrhi

University of Huddersfield, Huddersfield Business School, Queensgate, Huddersfield, HD1 3DH; University of Huddersfield - Business School

Date Written: January 14, 2019

Abstract

This study examines the impact of multi-layer governance mechanisms on the level of bank risk disclosure. Using a large dataset from 14 Middle East and North Africa (MENA) countries over a period of 8 years, our findings are three-fold. First, our results suggest that the presence of a Sharia supervisory board is positively associated with the level of risk disclosure. Second and at the bank-level, we find that ownership structures have a positive effect on the level of risk disclosure. At the country-level, our evidence suggests that control of corruption has a positive effect on the level of bank risk disclosure. Our study is, therefore, a major departure from much of the existing accounting literature that offers new crucial insights that show that firms’ disclosure choices are not mainly shaped by firm-level (internal) governance arrangements, but also country-level (external) governance and religious factors. Our findings have important implications for corporate boards, investors, regulatory authorities, standards-setters and governments relating to the development, implementation and enforcement of corporate and national governance standards.

Keywords: Risk Disclosure; Corporate Governance; Sharia Supervisory Board; Country Governance; MENA Banks; Resource dependence theory

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

Suggested Citation

Elamer, Ahmed Ahmed and Ntim, Collins G. and Abdou, Hussein and Zalata, Alaa and Elmagrhi, Mohamed, The Impact of Multi-Layer Governance on Bank Risk Disclosure in Emerging Markets: The Case of Middle East and North Africa (January 14, 2019). Elamer, A.A., Ntim, C.G., Abdou, H.A., Zalata, A., & Elmagrhi, M. (2019) ‘The Impact of Multi-Layer Governance on Bank Risk Disclosure in Emerging Markets: The Case of Middle East and North Africa’, Accounting Forum, Forthcoming (Accepted 14th January 2019).. Available at SSRN: https://ssrn.com/abstract=3315261

Ahmed Ahmed Elamer (Contact Author)

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

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

Alaa Zalata

University of Southampton - Southampton Business School ( email )

Southampton, SO17 1BJ
United Kingdom

Mohamed Elmagrhi

University of Huddersfield, Huddersfield Business School, Queensgate, Huddersfield, HD1 3DH ( email )

HD1 3DH
United Kingdom
07455392947 (Phone)

HOME PAGE: http://https://pure.hud.ac.uk/en/persons/mohamed-elmagrhi

University of Huddersfield - Business School ( email )

Queensgate
Huddersfield HD1 3DH
United Kingdom

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