The purpose of this paper is to examine and report on the extent and firm characteristics that determine the practices of online financial disclosure (OFD) by the Islamic banks in the Gulf Cooperation Council (GCC) countries.
Data were collected using the websites of 48 Islamic banks listed on the stock markets in the GCC countries. Moreover, the study used the websites of the stock markets to get more financial information which was not found on the websites of the banks. The study covered a period of three years from 2015 to 2017. A checklist was used to compute the total level of OFD.
This study found that the overall level of OFD in the GCC by Islamic banks is 72.4 percent. The results also report a significant and positive relationship with firm size. On the other hand, the results show an insignificant relationship with profitability (ROE and ROA), leverage and age.
The paper provides awareness regarding OFD that might prove beneficial to the various stakeholders of the banks including investors, regulators and preparers of financial statements.
This paper is an important contribution to filling the gap in the literature, as there are a negligible number of studies dealing with OFD from an Islamic perspective.
Abdalmuttaleb Musleh Al-Sartawi and Sameh Reyad (2018) "Signaling theory and the determinants of online financial disclosure", Journal of Economic and Administrative Sciences, Vol. 34 No. 3, pp. 237-247Download as .RIS
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