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Asian Journal of Business Ethics

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01-12-2014

The association of Islamic bank ethical identity and financial performance: evidence from Asia

Authors: Ahmad Zaki, Mahfud Sholihin, Zuni Barokah

Published in: Asian Journal of Business Ethics | Issue 2/2014

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Abstract

This study aims to explore whether a discrepancy exists between the ideal and communicated (disclosed) ethical identity of Islamic banks in Asia and, further, whether there is any association of communicated ethical identity with financial performance. To achieve the objectives, the study analyses data derived from annual reports of Islamic banks in Asia for the period 2006–2010. The results suggest that out of the seven banks studied, three of them are above average and the rest suffer from disparity between the ideal and communicated ethical identities. Further, the study shows that the disclosure of a vision and mission statement; board of directors and top management; zakah, charity, and benevolent loans; and Shari’ah supervisory boards are negatively associated with performance, while the disclosure of products and services and commitment toward employees are positively associated with performance.

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Title: The association of Islamic bank ethical identity and financial performance: evidence from Asia
Authors: Ahmad Zaki
Mahfud Sholihin
Zuni Barokah
Publication date: 01-12-2014
Publisher: Springer Netherlands
Published in: Asian Journal of Business Ethics / Issue 2/2014
Print ISSN: 2210-6723
Electronic ISSN: 2210-6731
DOI: https://doi.org/10.1007/s13520-014-0034-7

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