Impact of corporate governance on corporate social responsibility disclosure of the UAE listed banks

Abstract

Purpose This study aims to investigate the extent and trend of corporate social responsibility (CSR) disclosure by UAE listed banks and the impact of corporate governance mechanisms on this disclosure. Design/methodology/approach Content analysis of banks’ annual reports from 2009 to 2019 was applied to investigate the CSR disclosure level by constructing a disclosure index. Panel data regressions were applied to analyze the impact of corporate governance mechanisms on CSR disclosure. Findings UAE banks show an improving trend in the CSR disclosures. In addition, the board of directors and ownership structure are significantly and positively associated with the CSR disclosures. The results vary across the banking systems. Research limitations/implications This study considers the extent of the CSR disclosure in UAE banks’ annual reports, and future research should consider more industries and communication channels. Practical implications This study sheds light on the extent of the CSR disclosure of UAE listed banks and assists UAE policymakers in implementing appropriate corporate governance mechanisms. Social implications The findings provide banks with a better understanding of the benefits of strengthening corporate governance to improve their CSR disclosure. Originality/value This study contributes to the literature by constructing a more comprehensive disclosure index and examining the impact of corporate governance mechanisms on CSR disclosure by considering both the conventional and Islamic banking systems.