Islamic Banks' CSR: Talking the Talk, Not Walking the Walk?

Overview

Paper Summary › Explain Like I'm Five › Conflicts of Interest › Identified Limitations › Rating Explanation › Good to know › Topic Hierarchy › File Information ›

Paper Summary

Paperzilla title

CSR disclosure among GCC Islamic banks remains low, suggesting a gap between their professed social role and actual practice. While board size positively influences CSR disclosure, CEO duality and audit committee size have a negative effect, indicating complex governance dynamics at play. Interestingly, CSR disclosure had a negative relationship with firm value (using market capitalization as a proxy).

Explain Like I'm Five

Scientists found that special banks in the Middle East don't share much about how they help people. Even stranger, when they did share more, it made the banks seem like they were worth less money!

Possible Conflicts of Interest

None identified

Identified Limitations

Limited Sample Size

The limited sample size of 39 GCC Islamic Banks from 2010-2014 may not be representative of all Islamic banks, impacting the generalizability of the findings.

Data Collection Method

Relying solely on annual reports and websites for data collection may lead to incomplete or biased CSR information as companies might selectively disclose favorable aspects of their CSR performance.

Limited Scope of Governance Variables

Focusing only on board-related variables, neglecting other potentially relevant governance factors like executive compensation or shareholder activism, could limit the comprehensiveness of the analysis.

Limited Time Period and Standard Focus

The study primarily examines a specific period (2010-2014) before significant changes to accounting standards, limiting the applicability of findings to the current landscape of Islamic banking.

Limited Proxies for Firm Value

The study uses only certain proxies for firm value, leading to potential inaccuracies or biases in assessing the actual impact of CSR disclosure.

Rating Explanation

This study offers a valuable contribution by examining a specific niche in CSR research, focusing on GCC Islamic banks. However, the limited sample size, data collection method, focus on certain governance variables, narrow timeframe and choice of proxies hinder its generalizability and methodological rigor, leading to a rating of 3.

Good to know

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Topic Hierarchy

Domain: Social Sciences

Field: Business, Management and Accounting

Subfield: Accounting

File Information

Original Title: CSR disclosure, corporate governance and firm value: a study on GCC Islamic banks

Uploaded: July 14, 2025 at 07:02 AM

Privacy: Public