Evaluating ESG disclosures of Islamic banks: evidence from the Organization of Islamic Cooperation Members

Buallay, Amina; Wadi, Rami Mohammad Abu; Kukreja, Gagan; Hassan, Ahlam

doi:10.1504/ijisd.2020.108045

Cited by 21 publications

(20 citation statements)

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“…Other studies have found a negative relationship between sustainability reporting and financial performance (e.g. Buallay et al. , 2020b; McGuire et al.…”

Section: Literature Review and Developing Hypothesesmentioning

confidence: 92%

Sustainability reporting in food industry: an innovative tool for enhancing financial performance

Buallay

2021

BFJ

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PurposeThis study investigates the relationship between the level of sustainability reporting and Food Industry Performance (operational, financial and market).Design/methodology/approachUsing data culled from 1426 observations from 31 different countries for ten years (2008–2017), an independent variable derived from environmental, social, and corporate governance (ESG) score is regressed against dependent manufacture performance indicator variables [return on assets (ROA), Return on Equity (ROE) and Tobin’s Q (TQ)]. Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.FindingsThe findings elicited from the empirical results demonstrate that there is a significant relationship between ESG and financial performance (ROE). However, there is no significant relationship between ESG and operational performance (ROA) and market performance (TQ).Originality/valueThis paper presents a new framework that considers sustainability reporting as an innovation tool, examining innovation in terms of its positive or negative impact on financial performance. It contributes to research on the innovation paradigm and knowledge management by highlighting the significance of sustainability reporting as a tool of innovation in enhancing the financial performance.

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“…Other studies have found a negative relationship between sustainability reporting and financial performance (e.g. Buallay et al. , 2020b; McGuire et al.…”

Section: Literature Review and Developing Hypothesesmentioning

confidence: 92%

Sustainability reporting in food industry: an innovative tool for enhancing financial performance

Buallay

2021

BFJ

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“…Such evidence suggests that shareholders perceive that disclosure of ESG is a costly investment. On the other hand, recent studies have found that ESG is positively associated with financial performance (Fatemi et al, 2015;Buallay et al, 2020b).…”

Section: The Relationship Between Sustainability Reporting and Financ...mentioning

confidence: 94%

“…Empirical research by Buallay (2020) found that bank disclosures did not focus on environmental impact. In the same vein, Buallay et al (2020b) found that the financial sector continues to lag behind other sectors in terms of managing environmental and social impacts. Buallay et al (2020c) noted that managers of banks and non-bank financial companies have started to recognize that their activities have an effect on and are affected by the environment.…”

Section: Sustainability Reporting In the Banks And Financial Services...mentioning

confidence: 97%

“…In the aftermath of the financial crisis in 2008, banks that survived and grew were banks that operated sustainably and focused on the social, environmental and governance practices Buallay et al (2020b). Survival compels banks to focus on environmental and social value rather than simply on financial value (Capella, 2002).…”

Section: Sustainability Reporting In the Banks And Financial Services...mentioning

confidence: 99%

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Toward sustainability reporting in the MENA region: the effects on sector's performance

Buallay

2022

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PurposeThis study investigates the relationship between the level of sustainability reporting and sector's performance (operational, financial and market) in Middle East and North African countries (MENA) region.Design/methodology/approachUsing data culled from 316 observations from seven different sectors located in 11 countries for 10 years (2008–2017), an independent variable derived from environmental, social and governance (ESG) score are regressed against dependent performance indicator variables (return on assets [ROA], return on equity [ROE] and Tobin's Q [TQ]). Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.FindingsThe findings elicited from the empirical results that there are differences in the impact of sustainability reporting (ESG) on firm's operational performance (ROA), financial performance (ROE) and market performance (TQ) between the sectors in the MENA region.Originality/valueThe model in this study presents a valuable analytical framework for exploring sustainability reporting as a driver of performance in MENA economies. In addition, since this study contributes to the literature of sustainability accounting by a systematic depiction of cross-sectorial ESG reporting, this study establishes a benchmark to guide to firms wishing to adopt sustainability reporting.

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“…Day by day, dependence on digitization and nancial technology is increasing in all sectors around the world, especially the banking sectors, as this rapid development falls under the so-called Fourth Industrial Revolution. Reliance on digital and nancial technology has increased signi cantly with the spread of the Corona pandemic, which began in China in late 2019 and later spread to all parts of the world, as a result of this, the traditional work practices were temporarily dispensed within most sectors around the world, especially the banking sectors, and the shift to Working remotely, and with that was accompanied by the banking sectors converting most banking services to electronic services to complete most customer services through mobile applications, as well as money exchange machines distributed widely in alleys around the world (Buallay et al, 2020). With the increasing demand for nancial technology for banking sectors compared to other sectors, it has become imperative for the global banking sector to adapt to these increasing developments so that the banking sector can play its role effectively (Hassan et al, 2020).…”

Section: Digital Innovations In Banksmentioning

confidence: 99%

FinTech Innovations and Islamic Banking Performance: Post pandemic Challenges and Opportunities

Rahman

Rahiman

Meero

et al. 2022

Preprint

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Current research aims to investigate the role of financial technology (Fintech) during pandemics on Islamic financial institutions and banks’ performance. The study identified measures of lockdown executed by numerous countries across the world that have also indicated the significance of leveraging technology and establishing a livelier Islamic finance industry. The results and data analysis identified adoption of greater digitalization and incorporation of fintech strengthens the spirit of the industry in a more unstable ecosystem and challenges like pandemic and open another new opportunity for growth. However, recent financial years have shown that there is room for expansion and growth, especially for Sukuk issuance, by guidelines and regulations, and ease and velocity of implementation. The results also suggested various indications on the effect of financial technology reform on the Islamic banks’ growth significantly with the adoption of the Fintech revolution. Since the performance of Islamic banking proved to be better in certain aspects compared to conventional banking, this study suggests industry adopt paradigm change and development of financial technology to enhance the global market. JEL: F36, G24, Q55, Q56

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Evaluating ESG disclosures of Islamic banks: evidence from the Organization of Islamic Cooperation Members

Cited by 21 publications

References 0 publications

Sustainability reporting in food industry: an innovative tool for enhancing financial performance

Sustainability reporting in food industry: an innovative tool for enhancing financial performance

Toward sustainability reporting in the MENA region: the effects on sector's performance

FinTech Innovations and Islamic Banking Performance: Post pandemic Challenges and Opportunities

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