Corporate governance and operational risk voluntary disclosure: Evidence from Islamic banks

Neifar, Souhir; Jarboui, Anis

doi:10.1016/j.ribaf.2017.09.006

Cited by 100 publications

(122 citation statements)

References 38 publications

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“…Few variables of corporate governance, the proportion of independent commissioner (KI), the size of commissioner's board (DKSIZE), the presence of risk management committee (RMC), and the background of the independent audit committee (BKAI) do not affect ERM implementation based on the test conducted. This research shows contrasting results from the study by Neifar & Jarboui (2018). However, this outcome aligns with the research of Al-Maghzom, Hussainey, & Aly (2016).…”

Section: Corporate Governance On Erm Implementationsupporting

confidence: 83%

“…The presence of a representative from an independent party on the board of directors and commissioners should promote control, thus limiting the managerial opportunism (Fama & Jensen, 1983). In line with this reasoning, Neifar & Jarboui (2018) agree that the greater independence of directors and commissioners will improve the risk disclosure and transparency. Thus the following hypothesis is tested:…”

Section: Corporate Governance On Erm Implementationmentioning

confidence: 90%

“…Another research is also conducted on 34 Islamic banks from 10 countries regarding corporate governance and operational risk voluntary disclosure (Neifar & Jarboui, 2018). They found that the presence of independent directors and concentrated ownership structure helps increase operational risk disclosure for several reasons.…”

Section: Corporate Governance and Sharia Compliance Governancementioning

confidence: 99%

“…The independence of the audit committee is a keystone of the audit committee's effective performance (Chariri et al, 2017;Uzliawati et al, 2012). The existence of an independent audit committee that is free from all conflitcs of interest can contribute to the decline of the information's asymmetry between insiders and outsiders (Neifar & Jarboui, 2018). Therefore, it will help raise the disclosure of unbiased financial information, especially regarding a company's risk.…”

Section: Jurnal Keuangan Dan Perbankanmentioning

confidence: 99%

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Do corporate and Sharia compliance governance affect enterprise risk management implementation?

Adelina¹,

Trilaksono²,

Rohi-Mone³

2020

Jurnal Keuangan Dan Perbankan

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The growth of Sharia banking assets in Indonesia greatly influenced by the scalability of Sharia banking businesses, which is supported by an increase in good corporate governance. The banking industry in general functions very closely with risk. This means that banks acutely need a risk-based management approach that is now being developed by the regulator with an integrated approach through Enterprise Risk Management (ERM). Other specific aspects of governance in Sharia banking include governance for compliance with Sharia aspects (Sharia compliance governance). The method used in this study is multiple regression analysis. We intended to examine the influence of general and Sharia governance mechanisms that exist in Indonesian Sharia banking with the level of ERM implementation. We indicated that the presence of the risk management committee, independent audit committee, and Sharia compliance audits positively and significantly affect ERM implementation. This study expected to be beneficial especially to provide input on governance policies for both banks and regulators. AbstrakPertumbuhan aset perbankan syariah di Indonesia sangat dipengaruhi oleh skalabilitas bisnis perbankan syariah, yang didukung oleh peningkatan tata kelola perusahaan yang baik. Industri perbankan pada umumnya berfungsi sangat erat dengan risiko. Ini berarti bahwa bank sangat membutuhkan pendekatan manajemen berbasis risiko yang sekarang sedang dikembangkan oleh regulator dengan pendekatan terintegrasi melalui Enterprise Risk Management (ERM).Aspek spesifik lain dari tata kelola dalam perbankan syariah termasuk tata kelola untuk kepatuhan dengan aspek syariah (tata kelola kepatuhan syariah). Metode yang digunakan dalam penelitian ini adalah analisis regresi berganda. Kami bermaksud menguji pengaruh mekanisme tata kelola umum dan syariah yang ada di perbankan syariah Indonesia dengan tingkat implementasi ERM. Kami menunjukkan bahwa kehadiran komite manajemen risiko, komite audit independen, dan audit kepatuhan syariah secara positif dan signifikan mempengaruhi implementasi ERM. Studi ini diharapkan bermanfaat terutama untuk memberikan masukan tentang kebijakan tata kelola untuk bank dan regulator.

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Section: Corporate Governance On Erm Implementationsupporting

confidence: 83%

Section: Corporate Governance On Erm Implementationmentioning

confidence: 90%

Section: Corporate Governance and Sharia Compliance Governancementioning

confidence: 99%

Section: Jurnal Keuangan Dan Perbankanmentioning

confidence: 99%

See 2 more Smart Citations

Do corporate and Sharia compliance governance affect enterprise risk management implementation?

Adelina¹,

Trilaksono²,

Rohi-Mone³

2020

Jurnal Keuangan Dan Perbankan

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show abstract

“…Thus, more disclosure benefits both investors and banks. Neifara and Jarbouib (2018) research reveal the significant impact of independent directors on the voluntary disclosure of Islamic bank. It is also of advantage to the supervisors: the more items get disclosed, and hence the lesser the stock price volatil-ity, the lower the likelihood that the stock price will give wrong signals about a company's performance and risk.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 96%

The Level of Disclosure in Annual Reports of Banks: The Case of Slovenia

Kolar

Falež

2018

Organizacija

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Background and Purpose:Many studies have explored the disclosures in annual reports of companies. Annual reports of banks differ significantly from annual reports of other business entities, particularly in terms of disclosed items. The aim of this article is to investigate the level of disclosures and which factors influence the level of disclosure in the annual reports of banks in Slovenia. Design/Methodology/Approach: We have observed disclosures of all banks in Slovenia for year 2012 and 2015. The factors as used in the study are age, size, the government share, profitability and complexity of a bank. Our disclosure checklist consists of 144 voluntary and mandatory items. Statistical analysis is performed using linear regression analysis. Results: The average score for banks in Slovenia is near 94 points or 63% of all possible disclosures. The results of analyses indicated positive associations and statistical correlations between the level of disclosure in annual reports and the size of a bank, the share of government ownership and negative statistical influence of the age of bank on the level of disclosure. Our results do not show statistically significant correlation between the level of disclosure and a bank's profitability and complexity, which is against theory and findings from other similar research. Conclusion: In our opinion, results well reflect the Slovenian banking system and how banks reveal their information. Our finding is that banks in Slovenia provide less information to the public compared to the average companies in other branches or banks in similarly developed countries. The paper's main contribution is to deepen our knowledge about disclosures in the bank's annual reports and the answers what are the influential factors of disclosures for banks.

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What drives risk disclosure in Islamic and conventional banks? An international comparison

2020

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This paper examines and compares the relationship between risk disclosure and corporate attributes in Islamic and conventional banks. Using a comprehensive risk disclosure index covering nine dimensions, we analyse the level of risk‐related disclosure (RRD) in a sample of 72 Islamic banks and 97 conventional banks across 11 countries. The RRD index shows that Islamic banks disclose less information about risk comparing to conventional banks. Listed banks, larger banks and aged bank disclose more information about risk than the others. Block holders, foreign ownership and board size affect negatively risk disclosure. However, board independence and the percentage of foreign directors in the board affect positively risk disclosure. Moreover, banks with higher Tier 1 ratio disclose less information about risk. Our results encourages regulators to improve corporate governance mechanisms in their banking systems through the optimization of ownership structure (dispersed ownership) and the board's composition in order to promote higher level of transparency and RRD.

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Corporate governance and operational risk voluntary disclosure: Evidence from Islamic banks

Cited by 100 publications

References 38 publications

Do corporate and Sharia compliance governance affect enterprise risk management implementation?

Do corporate and Sharia compliance governance affect enterprise risk management implementation?

The Level of Disclosure in Annual Reports of Banks: The Case of Slovenia

What drives risk disclosure in Islamic and conventional banks? An international comparison

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