Title: Evaluating ESG disclosures of Islamic banks: evidence from the Organization of Islamic Cooperation Members

Authors: Amina Mohammed Buallay; Rami Mohammad Abu Wadi; Gagan Kukreja; Ahlam Ali Hassan

Addresses: Brunel Business School Brunel University London, UK; Ahlia University Manama, Bahrain ' Department of Accounting and Economics, Ahlia University, Manama, Bahrain ' Department of Accounting and Economics, Ahlia University, Manama, Bahrain ' Department of Management and Marketing, Ahlia University, Manama, Bahrain

Abstract: This study considers the level of environment, social and governance (ESG) disclosures in the Islamic banks listed on the Organization of Islamic Cooperation Members stock Exchange and investigates the relationship between ESG disclosures and banks' financial (ROE), operational (ROA) and market performance (TQ). We examine 59 banks for 10 years (2007-2016), ends up with 561 observations. The results of regression models found significant positive impact of ESG on operational, financial and market performance. However, the relationship between performance and these disclosures is varying if measured individually; the environmental disclosure found positively affect the ROA and TQ. Whereas, the corporate social responsibility disclosure is negatively affect the three models (ROA, ROE and TQ). Last but not the least, the corporate governance disclosure found negatively affects the financial and operational performance. However, positively affect the TQ.

Keywords: ESG disclosure; Islamic banks; performance; Organization of Islamic Cooperation Members.

DOI: 10.1504/IJISD.2020.108045

International Journal of Innovation and Sustainable Development, 2020 Vol.14 No.3, pp.266 - 287

Received: 17 Sep 2017
Accepted: 18 Sep 2018
Published online: 02 Jul 2020 *

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