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Signaling theory and the determinants of online financial disclosure

Abdalmuttaleb Musleh Al-Sartawi (Department of Accounting and Economics, Ahlia University, Manama, Bahrain)
Sameh Reyad (Department of Accounting and Economics, Ahlia University, Manama, Bahrain)

Journal of Economic and Administrative Sciences

ISSN: 1026-4116

Article publication date: 9 October 2018

Issue publication date: 9 October 2018

834

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Keywords

Acknowledgements

The authors of this paper have not made their research data set openly available. Any enquiries regarding the data set can be directed to the corresponding author.

Citation

Musleh Al-Sartawi, A. and Reyad, S. (2018), "Signaling theory and the determinants of online financial disclosure", Journal of Economic and Administrative Sciences, Vol. 34 No. 3, pp. 237-247. https://doi.org/10.1108/JEAS-10-2017-0103

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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