The extent of voluntary disclosure in the annual reports of Islamic banks: empirical evidence from Yemen
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Author(s)Eissa A. Al-HomaidiLink to ORCID Index: https://orcid.org/0000-0002-6230-8276
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Karrar Khalaf AllamyLink to ORCID Index: https://orcid.org/0000-0003-4139-9145
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Anwar AhmadLink to ORCID Index: https://orcid.org/0000-0001-9524-4064
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Mosab I. TabashLink to ORCID Index: https://orcid.org/0000-0003-3688-7224
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DOIhttp://dx.doi.org/10.21511/bbs.15(1).2020.16
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Article InfoVolume 15 2020, Issue #1, pp. 167-184
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Creative Commons Attribution 4.0 International License
This article aims to measure the level of voluntary disclosure in the published annual reports of Yemeni Islamic banks. Four full-fledged Islamic banks from Yemen are selected for the current study. A disclosure checklist covering 266 items is prepared and a 10-year period, 2005–2014, is taken. The disclosure index items were classified into seven groups, such as basic information on Islamic banks, financial ratios, corporate governance information, financial statements data, corporate social disclosure, Zakat information, and other information that has been taken as an important attribute of voluntary disclosure. The obtained results show that the amount of voluntary disclosure that Yemeni Islamic banking institutions publish in their annual reports has gradually increased over the ten years examined. The results revealed that the highest average disclosure index score over the ten years was achieved by Tadhamon Islamic International Bank (TIIB), the second highest average disclosure score was obtained by Saba Islamic Bank (SIB), and the lowest average voluntary disclosure rating score during the ten years surveyed was achieved by Shamil Bank of Yemen & Bahrain in Yemen during the study period. Substantially, the result of voluntary disclosure scores indicates that the degree of voluntary disclosure by Yemeni Islamic financial institutions has relatively expanded during the ten years investigated. The findings provide new evidence for voluntary disclosure, particularly, Islamic disclosure items. The survey findings can be useful for regulators in Yemen to improve overall disclosure practices by Islamic banks operating in Yemen.
- Keywords
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JEL Classification (Paper profile tab)M14, M40, M48
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References58
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Tables7
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Figures1
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- Figure 1. The degree of voluntary disclosure groups
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- Table 1. Some empirical studies of Islamic banks
- Table 2. Voluntary information categories
- Table 3. TVDIS for each Islamic bank over the ten years (2005–2014)
- Table 4. Descriptive TVDIS statistics over the ten years analyzed
- Table 5. Developments of the degree of TVDIS over the 2005–2014 period
- Table 6. Descriptive statistics for categories of the voluntary information disclosure index
- Table A1. Voluntary disclosure index items
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Ali T. Yahya , Asif Akhtar , Mosab I. Tabash
doi: http://dx.doi.org/10.21511/imfi.14(4).2017.04
Investment Management and Financial Innovations Volume 14, 2017 Issue #4 pp. 30-39 Views: 2328 Downloads: 422 TO CITE АНОТАЦІЯThis study investigates the impact of political instability, macroeconomic and bank-specific factors on the profitability of Islamic banks in the context of Yemen. The study used two common measures of profitability, namely, Return on Assets (ROA) and Return on Equity (ROE) as dependent variables. Seven key independent (internal and external) variables are also used. There are five fully-fledged Islamic banks (IBs) working in Yemen. The study selected only three out of five IBs due to the availability of data for the period ranging from 2010 to 2014. The descriptive and multiple regression analyses were done. The results of the study indicate that operating efficiency and financial risk have negative and significant relationships with ROA and ROE. The findings also show that capital adequacy has a negative and insignificant relationship with ROA and ROE. Furthermore, the study reveals that assets size (LogA), assets management, liquidity and deposits have a significant and positive impact on banks’ profitability. GDP, Inflation rate (IR) and Political instability have positive and significant impact on Yemeni banks’ profitability. Based on the best knowledge of the authors, this study is considered one of the first and pioneering studies that determine the factors affecting the profitability of Islamic banks of Yemen. Therefore, the study gives good insights for the policy makers, regulators and interested parties for enhancing the profitability of Islamic banks in Yemen.
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Mosab I. Tabash ,
Jinyu Zhu ,
Saleh F. A. Khatib ,
Najib H. S. Farhan
doi: http://dx.doi.org/10.21511/bbs.16(2).2021.13
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Spin-off policy and efficiency in the Indonesian Islamic banking industry
M. Nur Rianto Al Arif ,
Ismawati Haribowo ,
Ade Suherlan
doi: http://dx.doi.org/10.21511/bbs.13(1).2018.01
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