Determinants of Ethical Identity Disclosure in Islamic Banks: Empirical Evidence in Indonesian Islamic Banks

Erlinda Nur Khasanah,Wia Rizqi Amalia

doi:10.24235/amwal.v13i1.7740

Abstract

This study aimed to determined factors influencing the disclosure of ethical identity. The data used in this study was secondary data taken from Islamic Banks annual report from 2013-2016. Total sample consisted of 44 samples. To test the hypothesis, this study used multiple regression analysis. This study found that the disclosure of Islamic Bank’s ethical identity in Indonesia were considered quite low. The size of Audit Committee significantly influenced the disclosure of ethical identity, while other factors; the size of Board of Directors were not significant, and both the Board of Commissioners and the Shari’ahh Supervisory Board were found negatively significant to the disclosure of ethical identity.

Highlights

The definition of identity is mentioned in Oxford Dictionary as who or what is a person or thing or characteristics determining who or what a person or thing is
One way that can be carried on to show information of corporate identity according to Haniffa & Hudaib (2007) is through annual reports
Data Collection Techniques The data used in this study was secondary data obtained from annual report for 2013 – 2018 period that available in each Islamic bank’s website

Summary

Introduction

The definition of identity is mentioned in Oxford Dictionary as who or what is a person or thing or characteristics determining who or what a person or thing is. In the context of organization, corporate identity is the reality and uniqueness of an organization that is related to image and reputation of organization through corporate communication both internally and externally (Gray & Balmer, 1998). That corporate communication is a process of how stakeholders see the identity, image and reputation of corporate. One way that can be carried on to show information of corporate identity according to Haniffa & Hudaib (2007) is through annual reports. Annual report is an important instrument to communicate with the stakeholders (Ditlevsen, 2012). Information that contains corporate identity is able to create positive confidence in corporate and is considered relevant in improving image of the corporate by forming competitive advantages and improving corporate performance (Arendt & Brettel, 2010)

Objectives

Methods

Conclusion