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This paper aims to systematically review the existing studies for Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards which include different tracks of researches and then identify the gaps to propose opportunities for future research.

By adopting a systematic literature review approach, 46 papers that were published between 2000 and 2020 from 23 journals concerned with AAOIFI were selected for review and analysis.

The authors combine electronic searches to identify relevant studies using keywords such as “AAOIFI” or and “Islamic standards.” In light of the existing studies’ limitations, this paper derives and summarizes five leading future research tracks: identifies the research gaps in AAOIFI and then suggests that AAOIFI still requires more empirical analyses; identifies the alternative analytical methods as meta-analysis; identifies additional measurements for macro and microeconomics factors; identifies recent tracks as corresponding to Covid-19 pandemic; and future studies should consider the role of central banks and positive criticism for AAOIFI.

This analysis address the literature gaps on measuring compliance, determinants and consequences of AAOIFI adoption as this study serves as a guide for the researchers, regulators and Islamic financial institutions in research associated with this area. The findings would support AAOIFI, regulators and related authorities across jurisdictions with suggestions on improving the current AAOIFI practices.

This literature review is a historical record and guidance for researchers who seek to examine and explore several questions about AAOIFI. To the best of the authors’ knowledge, this is the first paper that applies systematic literature review over AAOIFI research field.

This paper aims to examine the extent to which financial performance (FP) represents one of the main determinants for tone disclosure (TD) in Egyptian annual reports. The authors also measure the bidirectional relationship between TD and FP.

The manual content analysis is used to measure the levels of TD in annual reports for a sample of 105 firms listed on the Egyptian stock market. The sample covers a three-year period (2011-2013).

The descriptive analysis in this paper shows that Egyptian firms disclose more good news than bad news. Therefore, the net news disclosure, or net variances, between good/bad is positive. The empirical analysis shows a positive association between the narrative disclosure of good/bad news and FP based on return on assets. The authors also find a highly significant association between the auditor, profitability, leverage, firm growth and financial reporting of good/bad news information. Finally, the results of the ordinary least squares regression show that the causality between the two endogenous variables runs from FP to TD. Thus, TD is determined by FP.

This study offers a novel contribution to disclosure studies by being the first study to examine TD in one of the developing countries.

The economic consequence for adopting accounting standards is one of the growing and valuable topics in accounting research. The purpose of this paper is to address the question whether the adoption of Islamic standards that are issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFIs) has a positive effect on the level of earnings management (EM) in the Islamic banks (IBs) setting. The authors measure, in general, the impact of AAOIFI for adopter and non-adopter banks. This paper furthermore investigates whether IBs adopting AAOIFI as compulsory or as voluntary adopters, in general, are being less engaged in earnings manipulation.

Using empirical data from 143 IBs across 26 different countries from 2014 to 2018, the paper uses a linear regression model and probit regression analysis that group the banks investigated in this paper into adopters and non-adopters. Additional probit regressions were performed to test to what extent the status of AAOIFI adoption (compulsory or voluntary adopters) has an impact of EM.

The adoption of AAOIFI generally is associated with a reduction in the EM level. Furthermore, adopter IBs for AAOIFI is least involved in EM as compared to non-adopter IBs. In addition, the findings of this paper indicate that IBs across countries that mandate AAOIFI standards are less engaged in earnings manipulation as compared to other IBs in countries that adopt AAOIFI as voluntary standards.

The results reported in this paper provide insights to central banks and regulators regarding the prominence of mandates of AAOIFI standards for IBs to enhance the trust level of stakeholders by reducing the unethical behavior (EM). In addition, this paper supports the applicability of AAOIFI standards for IBs rather than the conventional standards such as IFRS or local GAAP.

To the best of the authors’ knowledge, the findings are unique at two levels. First, the paper provides evidence on the economic consequences of using AAOIFI in the context of IBs which was not explored by previous research. Second, the paper extends the investigation of the impact of AAOIFI adoption for adopters verses non-adopters, as well as for mandatory verses voluntary adoption of AAOIFI.

Shariah board (SB) is a unique corporate governancemechanism in Islamic financial institutions. Over the last decade, an increasing number of studies discusses the relationship between SB and Islamic banks' (IB) performance. These researches report conflicting findings due to the heterogeneity of their samples. Therefore,the purpose of this paper is to meta-analyze the results of the previous empirical studies to assess if the differences in findings were attributable to moderating effects related either to the system of SB or the used SB variables or the variables used to identify performance.

To examine the direct and moderating effects of SB attributes, this study uses a meta-analysis technique on a sample of 46 empirical studies, using Hunter and Schmidt’s approach followed by three exploratory moderator analyses: ROE, ROA and Tobin’ Q. Significant results are discussed.

Overall, the meta-analysis findings show that there is a positive significant association between SB meetings and qualifications and IBs’ performance. In testing the moderating effects of financial performance measurement during the post-subprime crisis period, the meta-analysis findings suggest that there is a positive significant association between SB characteristics (size, qualification, reputation, interlock and expertise) and performance. The meta-analysis findings stress the importance of several SB attributes in improving IBs’ performance, especially, during the economic recovery period.

This paper adds significance to the extant Islamic finance literature as well as assists the appropriate stakeholders in assessing the determinants of IBs’ performance from Shariah governance perspective. It further aims to reconcile the findings of the previous studies around the world. Moreover, the findings help future research to build a comprehensive Shariah governance index for IBs.

This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL).

This study uses data extracted from financial reports for a sample from EGX100 over the period from 2015 to 2019. This study applies content analysis approach to measure the level of BDA. This study uses ordinary least squares, structure equation modelling and principal component analysis to investigate the relationship between BG, BDA and ARL.

The findings indicate that BDA can be used as a predictor of ARL for companies listed on the Egyptian stock exchange. The results show that board diversity has a significant effect on ARL when BDA is used as a mediator.

This study only includes technology, telecommunications and health-care industries in the sample.

This paper raises investor and stakeholder awareness for the importance of BDA and corporate governance (CG) procedures in reducing audit report delays in developing countries such as Egypt. This study can assist regulators in developing audit report requirements and enforcing regulations to guarantee timely audit report publication.

This paper provides a shred of unique evidence on the role of BDA in mediating the relationship between BG and ARL in a developing country.

The purpose of this paper is to construct an investment account holders' transparency and disclosure (IAH-T&D) index based on the new and revised accounting standard for investment accounts of the Accounting and Auditing Organization for Islamic Financial Institutions Standards (AAOIFI) (2020). It also aims to measure and compare the compliance level with IAH-T&D over years and between countries.

This study uses the content analysis method to analyze the content of 270 annual reports across 30 Islamic banks (IBs) in 10 Middle East and North Africa countries during the period from 2010 to 2019.

This study introduces a new IAH-T&D index which consists of 27 items representing four categories: investment accounts disclosure (11 items), incentive earnings disclosure (1 item), allocations and reserve disclosure (4 items) and general requirements for disclosure (11 items). The analysis shows that the level of IAH-T&D is 51%. The level of compliance varies over the years and across countries.

To the best of the authors’ knowledge, this is the first study that offers an original self-constructed-T&D index that could enhance future research related to determinants and consequences of IAH-T&D practice in IBs.

The authors explore the level and determinants of compliance with Accounting and Auditing Organization for Islamic Financial Institution’s (AAOIFI) financial and governance standards by Islamic banks (IBs).

The sample consists of 43 IBs across eight countries. The authors use ordinary least squares regression analyses to examine the impact of bank-specific characteristics and corporate governance (CG) mechanisms concerned with Board of Directors (BOD) and Sharia Supervisory Board (SSB) on the levels of compliance with AAOIFI standards.

The paper finds that the average compliance level based on AAOIFI standards concerning the SSB is 68 per cent; corporate social responsibility (CSR) is 27 per cent; and presentation of financial statements (FSs) is 73 per cent. The aggregate disclosure based on the three indices is 56 per cent. The analysis also shows that size, existing Sharia-auditing department, age and CG of SSB are the main determinants of compliance levels.

The determinants of compliance with AAOIFI standards for IBs around the world have not been explored before, and therefore, this paper is the first of its kind to this issue.

The purpose of this paper is to examine the effect of sharia, social and financial disclosure on stakeholders’ loyalty towards Islamic banks (IBs). The paper also aims to examine the extent to which trust and satisfaction mediate this effect.

It uses data collected from 600 respondents to survey questionnaires disseminated to stakeholders from 15 countries dealing with IBs. Structural equation modelling is adopted with a partial least square approach.

The results indicate that there is a significant impact of disclosure on stakeholders’ trust, satisfaction, and loyalty. The results also indicate that there is a partial mediating effect of trust and satisfaction in the relationship between disclosure and loyalty. This paper is one of the first studies examining the effect of disclosure on stakeholders’ loyalty. The authors provide novel findings, which have theoretical and practical implications for disclosure in IBs and their relationship with stakeholders.

The analysis offers a novel contribution to the Islamic banking literature by offering the first evidence on the impact of disclosure on stakeholders’ trust, satisfaction, and loyalty.

The authors measure the impact of culture on Sharia; Social and Financial Disclosure (SSFD) of Islamic Banks (IBs) around the world.

Content analysis is used to measure levels of disclosure for a sample of 136 IBs of 25 countries for years 2013 and 2014. Different cultural measures are used. These include secrecy/transparency as suggested by Gray (1988) and Hofstede (1980, 1983, 2001, 2010)’s culture dimensions which include: Power Distance; Individualism; Masculinity; Uncertainty Avoidance; Long-Term Ordination and Indulgence. Ordinary least square (OLS) regression is used to test the research hypotheses.

After controlling bank-specific, corporate governance and country characteristics, the authors found that Hofstede’s culture dimensions have a significant impact on SSFD. They also found that Gray's transparency dimension positively influence levels of sharia, social and aggregated disclosure. Therefore, they conclude that culture influences levels of disclosure in IBs.

This study has policy implications for managers and regulators of Islamic banking industry.

This study is the first to use both Gray and Hofstede models in the context of IBs around the world. It also the first to explore the impact of culture on three different disclosure levels for IBs.