GRM 2010 GRM 2011

Abstract Details

Family Name:
Kartika Dewi
First Name:
Title of Paper:
Factors Influencing Islamic Social Reporting in Islamic Banks: A Study of Islamic Banks in GCC and ASEAN Region
Paper Proposal Text :
As institutions which bring the name and spirit of Islam, Islamic banks are expected not only to conduct their business in accordance to the Islamic principles, but also to perform a set of noble social responsibilities and disclose them systematically in their annual reports. Since about two-third of the world’s Islamic banks are located in the GCC countries and majority of the rest are established in the South-East Asian region, it is interesting to find out how Islamic banks in the two regions present their Islamic social reporting (ISR). In this study, the researchers analyzed annual reports of 2008-2010 presented by 22 Islamic banks in the two regions by using content analysis to come with the ISR index. Moreover, to find out what factors influencing the index, this study used causal research and hypothesis testing. Factors which were used in this study include social and political condition of the country where the Islamic bank is operating in, number of Muslim population in the country, Islamic governance score, capital structure, leverage, and profitability of the Islamic banks. The results show that three factors: social and political condition, number of Muslim population, and leverage significantly influence the Islamic banks to present the ISR. Result of this study may benefit the Islamic banking industry not only in GCC and ASEAN countries but also in other part of the world to implement full-disclosure principle in more comprehensive manner.