Shariah, presentation and content dimensions of Web 2.0 applications and the firm value of Islamic financial institutions in the GCC countries

Abstract

Purpose

This study aims to examine the relationship between the three dimensions of Web 2.0 disclosure (Shariah, content and presentation) and the firm value of listed Islamic financial institutions (IFIs) in the Gulf Cooperation Council (GCC) stock exchanges.

Design/methodology/approach

A checklist of 118 items was used to measure the level of Web 2.0 disclosure for the IFIs that are listed on the GCC stock exchanges. Data were gathered from the websites of the IFI samples, where researchers looked for annual reports, RSS, widgets, web-casting and the layout and design of the websites.

Findings

Based on the results, the level of the Shariah dimension by GCC IFIs was 74.93%, the level of the content dimension was 76.33%, the level of the presentation dimension was 78.03% and the level of the overall Web 2.0 disclosure was 75.73%, and a positive and significant relationship between the content dimension and Tobin’s Q.

Practical implications

In addition to other reforms, this study recommends IFIs to improve their regulations, risk management and standardization.

Originality/value

This study offers a new contribution as it adds a new perspective to the online financial disclosure literature, which is the Shariah dimension. Furthermore, this study provides empirical evidence for interested parties in the Islamic banking industry such as users and regulators in the GCC countries concerning the importance and usage of Web 2.0 applications for disclosure and its positive impact on adding a premium to IFIs.

Citation

Musleh Alsartawi, A., Reyad, S. and Madbouly, A. (2022), "Shariah, presentation and content dimensions of Web 2.0 applications and the firm value of Islamic financial institutions in the GCC countries", Journal of Islamic Marketing, Vol. 13 No. 9, pp. 1988-2005. https://doi.org/10.1108/JIMA-02-2019-0020