• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2014 Vol.5(2): 199-203 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2014.V5.371

Corporate Ethical Identity Disclosures: The Perceived, the Publicized and the Applied in Islamic Banks

Rashidah Abdul Rahman, Bello Lawal Danbatta, and Nur Syatilla Binti Saimi
Abstract—The public’s perception about Islamic banks is that, they are ethical banks founded on religious precepts hence; they would be more transparent when compared to conventional banks, but our preliminary studies proves that perception to be wrong. This paper examines the levels of expected and actual ethical identity disclosures by Islamic banks using various dimensions of ethical identity disclosures for 21 banks in Bahrain and Malaysia. The main source of data is the annual reports of each bank for five consecutive years, 2007 to 2011. Data collected were analyzed using Ethical Identity Index (EII) model and Descriptive Analysis. Based on EII analysis, we found that, the aggregate actual applied disclosure in both Malaysia and Bahrain is only 51.7% of the expected industry benchmark. We also found that, the most applied disclosure levels in both countries is the debtor’s dimension (77.7%) and the least applied disclosure dimension is the environment disclosures (6.6%). Other important dimensions that might impact on Islamic bank’s future acceptance, profitability, growth, sustainability and reputation were less disclosed. Hence, we conclude and recommend for a collective effort and commitment by both regulators and Islamic bank’s management to ensure increased ethical disclosures to meet the public perception and expectations.

Index Terms—Corporate ethical identity disclosures, disclosure dimensions, Islamic banks, content analysis.

Rashidah Abdul Rahman and Bello Lawal Danbatta are with the Accounting Research Institute (ARI), Universiti Technology Mara (UiTM), Malaysia.
Nur Syatilla Binti Saimi was with the Accounting Research Institute (ARI), Universiti Technology Mara (UiTM), Malaysia (e-mail: nursyatilla87@gmail.com).

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Cite: Rashidah Abdul Rahman, Bello Lawal Danbatta, and Nur Syatilla Binti Saimi, "Corporate Ethical Identity Disclosures: The Perceived, the Publicized and the Applied in Islamic Banks," International Journal of Trade, Economics and Finance vol.5, no.2, pp. 199-203, 2014.

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