• Islamic Governance, National Governance, and Bank Risk Management and Disclosure in MENA Countries

      Elamer, Ahmed A.; Ntim, C.G.; Abdou, H.A. (2020-06-01)
      We examine the relationships among religious governance, especially Islamic governance quality (IGQ), national governance quality (NGQ), and risk management and disclosure practices (RDPs), and consequently ascertain whether NGQ has a moderating influence on the IGQ–RDPs nexus. Using one of the largest data sets relating to Islamic banks from 10 Middle East and North Africa (MENA) countries from 2006 to 2013, our findings are threefold. First, we find that RDPs are higher in banks with higher IGQ. Second, we find that RDPs are higher in banks from countries with higher NGQ. Finally, we find that NGQ has a moderating effect on the IGQ–RDPs nexus. Our findings are robust to alternative RDP measures and estimation techniques. These results imply that the quality of disclosure depends on the nature of the macro-social-level factors, such as religion that have remained largely unexplored in business and society research, and, therefore, have important implications for policy makers.
    • Ownership types, corporate governance and corporate social responsibility disclosures: Empirical evidence from a developing country

      Alshbili, I.; Elamer, Ahmed A.; Beddewela, E. (2019)
      This study aims to examine the extent to which corporate governance structures and ownership types are associated with the level of Corporate Social Responsibility Disclosures (CSRD) in a developing country. Design/methodology/approach: Multiple regression techniques are used to estimate the effect of corporate governance structures and ownership types on CSRD using a sample of Libyan oil and gas companies between 2009 and 2013. Findings: First, our results suggest that although the level of CSRD in Libya is low in comparison to its western counterparts, ownership factors have a significant positive influence on CSRD. Second, we find board meetings to have a positive impact on CSRD. However, we fail to find any significant effect of board size and presence of CSR committees on CSRD. Overall, our results support prior theoretical evidence that pressures exerted by the government and external stakeholders have a considerable influence in promoting firm-level CSRD activities, specifically as a legitimising mechanism in fragile states. Research limitations/implications: First, our research is based on the annual reports and it did not examine any other reports or other mass communication mechanism that companies’ management may use to disclose CSR information. Future studies might consider disclosures in other channels, if any, such as the internet, CSR reports etc. Additionally, this research adopts the neo-institutional theory perspective. Future studies might integrate multi-theoretical lense to offer a richer basis for understanding and explaining CSRD determinants. Originality/value: Our research contributes to the literature by first providing additional evidence for existing studies, which suggest that on average better-governed companies are more liable to follow a more socially responsible agenda than poorly governed companies as a legitimising mechanism in fragile states. Also, our study overcomes a major weakness in existing Libyan studies, which have mainly used descriptive data.