Abstract
Revealing accurate and complete information of the business is the prime focus of
Islamic finance as it proposes to avoidance any sort of Gharar (uncertainty). Lack of
disclosure could lead to exploitation of the information by few members in the market
at the expense of others. The difference between Islamic Bank and Conventional
Bank is that Islamic bank takes disclosure of governance status as a religious
obligation as compared to disclosure of conventional banks based upon legal
obligation of the country. Similarly, Islamic banks put efforts in disclosing
information of Shari’ah governance and social responsibility as per religious
obligation as compared to voluntary disclosure by conventional banks. This study is
built on the idea that if Islamic Bank considers Shari’ah disclosure and social
responsibility as voluntary disclosure then it is expected that there will be a
significant difference between all present Islamic banks. Lastly, this study has
generated an overall disclosure index using principal factor analysis and evaluated its
impact on the performance of the banks to reveal that disclosure entails positive
impact on performance
Nadia Hanif, Noman Arshed. (2016) Comparison of Disclosure Level among Islamic Banks and Its Effect on Performance, Islamic Banking and Finance Review, Volume 3, Issue 1.
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