The relationship between the extent of online financial disclosure and profitability of Islamic banks

The relationship between the extent of online financial disclosure and profitability of Islamic... PurposeThis study aims to examine the relationship between online financial disclosure (OFD) and profitability of Islamic banks in the Gulf Cooperation Council (GCC) countries.Design/methodology/approachAn extensive review of the literature was carried out and a checklist of 90 items (71 for content and 19 for presentation) was adopted to measure the level of OFD for the Islamic banks that are listed on the GCC stock exchanges. Additionally, the study used three indicators to measure profitability, namely, return on equity, return on assets and earnings per share.FindingsThe findings show that the overall OFD by Islamic banks in the GCC is 72.5 per cent, and a negative and insignificant relationship between OFD and profitability.Practical implicationsThe study recommends that regulatory bodies should develop a guideline of disclosing information through the internet to enhance the transparency and performance among Islamic banks, which leads to reasonable economic decision-making.Originality/valueThe study contributes to the financial reporting and the Islamic economy literature relating to the GCC countries as previous studies gave no attention to Islamic banks. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Financial Reporting and Accounting Emerald Publishing

The relationship between the extent of online financial disclosure and profitability of Islamic banks

Loading next page...
 
/lp/emerald-publishing/the-relationship-between-the-extent-of-online-financial-disclosure-and-TIlECJFa16
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1985-2517
DOI
10.1108/JFRA-11-2017-0103
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study aims to examine the relationship between online financial disclosure (OFD) and profitability of Islamic banks in the Gulf Cooperation Council (GCC) countries.Design/methodology/approachAn extensive review of the literature was carried out and a checklist of 90 items (71 for content and 19 for presentation) was adopted to measure the level of OFD for the Islamic banks that are listed on the GCC stock exchanges. Additionally, the study used three indicators to measure profitability, namely, return on equity, return on assets and earnings per share.FindingsThe findings show that the overall OFD by Islamic banks in the GCC is 72.5 per cent, and a negative and insignificant relationship between OFD and profitability.Practical implicationsThe study recommends that regulatory bodies should develop a guideline of disclosing information through the internet to enhance the transparency and performance among Islamic banks, which leads to reasonable economic decision-making.Originality/valueThe study contributes to the financial reporting and the Islamic economy literature relating to the GCC countries as previous studies gave no attention to Islamic banks.

Journal

Journal of Financial Reporting and AccountingEmerald Publishing

Published: Jun 24, 2019

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off