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Integrated reporting and performance: a cross-country comparison of GCC Islamic and conventional banks

Amina Buallay (Brunel University, London, UK and Ahlia University, Manama, Bahrain)
Ammar Abdulla Al Hawaj (Brunel University, London, UK and Ahlia University, Manama, Bahrain)
Allam Hamdan (Ahlia University, Manama, Bahrain)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 20 June 2020



In the Gulf Cooperative Council (GCC) countries, the integrated reporting (IR) concept has attracted considerable attention from banks. In as much as IR is not a legal requirement anywhere in the GCC, however, the incidence of disclosure by banks across the GCC varies considerably and asymmetries exist in the content of disclosure released by banks within, as well as across, these jurisdictions. This study aims to examine the relationship between IR disclosure and financial, operational and market performance in both Islamic and conventional banks.


This study examines five years (2012-2016) of IR from 59 banks in GCC countries with 295 observations. The integrated report index (IRI), as the independent variable, is regressed separately against three performance indicators [return on assets, return on equity and Tobin’s Q (TQ)] as dependent variables. In addition, the following two types of control variables are inserted in the regression equations in this study: macroeconomic (two indicators) and bank characteristics (three indicators).


The findings elicited from the empirical results demonstrate that, on the one hand, IR in conventional banks positively affects market performance, while negatively affecting operational and financial performance. On the other hand, the results for Islamic banks show that IR negatively affects market performance, with no discernible effect on neither financial nor operational performance. In the GCC banking sector, for the most, empirical results conflict with expectations implied by signaling theory and capital need theory. From this study, evidence suggests that GCC bank performance would not improve were IR disclosure rendered mandatory. However, that conclusion is stronger with respect to Islamic than with respect to conventional banks in the region.


The study provides insights into the effect of voluntary disclosure of IR as gauged by various measures of performance across Islamic and conventional banks located in a range of GCC countries. This study accordingly provides perspective on the extent to which IR can and does play a role in contributing to bank performance.



The authors wish to dedicate this work to Professor Abdulla Al Hawaj the Founding President of Ahlia University and the President Professor Mansoor Alaali for the unconditioned and continuous support of academic research.


Buallay, A., Al Hawaj, A.A. and Hamdan, A. (2020), "Integrated reporting and performance: a cross-country comparison of GCC Islamic and conventional banks", Journal of Islamic Marketing, Vol. ahead-of-print No. ahead-of-print.



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