This study aims to examine the relationship between online financial disclosure (OFD) and profitability of Islamic banks in the Gulf Cooperation Council (GCC) countries.
An extensive review of the literature was carried out and a checklist of 90 items (71 for content and 19 for presentation) was adopted to measure the level of OFD for the Islamic banks that are listed on the GCC stock exchanges. Additionally, the study used three indicators to measure profitability, namely, return on equity, return on assets and earnings per share.
The findings show that the overall OFD by Islamic banks in the GCC is 72.5 per cent, and a negative and insignificant relationship between OFD and profitability.
The study recommends that regulatory bodies should develop a guideline of disclosing information through the internet to enhance the transparency and performance among Islamic banks, which leads to reasonable economic decision-making.
The study contributes to the financial reporting and the Islamic economy literature relating to the GCC countries as previous studies gave no attention to Islamic banks.
Al-Sartawi, A.M.A.M. and Reyad, S.M.R. (2019), "The relationship between the extent of online financial disclosure and profitability of Islamic banks", Journal of Financial Reporting and Accounting, Vol. 17 No. 2, pp. 343-362. https://doi.org/10.1108/JFRA-11-2017-0103
Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited