Year: 2024
Type: article
Abstract: Purpose: This study aims to assess the social reporting practices of Saudi Islamic Banks (IBs) over a 15-year period. It seeks to evaluate the effectiveness with which Saudi IBs meet their social reporting expectations, including Sharia disclosure requirements. Design/methodology/approach: A longitudinal content analysis method was utilised, underpinned by a specifically developed research instrument that is culturally relevant and reflects the unique characteristics of Islamic banking. This approach allows tracking of changes over an extended period and captures the dynamic nature of disclosure practices influenced by both internal ethical mandates and external regulatory pressures. Finding: The findings reveal a moderate disclosure rate of 51.11% across Saudi IBs, with notable deficiencies in crucial areas such as Sharia governance and Qard Hassan. The study identifies a particularly low average disclosure rate of 36% for Sharia governance, indicating a significant gap between IBs’ claims of Sharia adherence and their actual reporting practices. This moderate level of transparency suggests that many areas critical to Islamic principles are not being fully disclosed. Originality: This research contributes to the literature by providing a comprehensive longitudinal analysis, which is rare in the field of Islamic banking. It addresses significant gaps within the Saudi context, a pivotal region for Islamic finance, offering new insights into the compliance with Sharia standards over time. The study's methodology and focus on cultural relevance in the development of the research instrument add a novel dimension to the exploration of Islamic banking practices. Research limitations: The reliance on quantitative content analysis methods, which may not fully capture the informal or less documented disclosure practices within Islamic banking, could be a limitation of this study. Additionally, restricting the sample to Saudi Islamic Banks might limit the generalizability of the findings to other Islamic banking contexts or geographical regions. Future research should consider adopting qualitative methods across a broader sample.
Source: Journal of Ecohumanism
Author: Faisal A. Otaibi
Institution: Shaqra University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405720642