2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies

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Format: General Document
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collectionurl https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3
copyright Copyright©PWB2025
country Malaysia
date 2017-08-14
format General Document
id 16377
institution UniSZA
originalfilename VOLUNTARY DISCLOSURE OF THE ACCOUNTING AND AUDITING ORGANIZATIONS FOR ISLAMIC FINANCIAL INSTITUTIONS STANDARDS BY TAKAFUL COMPANIES (MASTER_2017).pdf
person Fahru Azwa Mohd Zain
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resourceurl https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16377
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spelling 16377 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16377 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) 259 Copyright©PWB2025 Fahru Azwa Mohd Zain Dissertations, Academic 2017-08-14 VOLUNTARY DISCLOSURE OF THE ACCOUNTING AND AUDITING ORGANIZATIONS FOR ISLAMIC FINANCIAL INSTITUTIONS STANDARDS BY TAKAFUL COMPANIES (MASTER_2017).pdf Voluntary Disclosure Accounting And Auditing Organizations Islamic Financial Institutions Standards Takaful Companies Voluntary disclosure (Accounting) Islamic financial institutions – Standards Accounting standards – Islamic finance Auditing – Islamic perspective Takaful – Financial reporting 2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies The current standards of financial reporting, which are based on conventional frameworks, seem insufficient to guide the Islamic financial institutions in their preparation of the financial reports. Currently, IFIs worldwide apply different accounting standards due to the lack of enforcement of international Islamic accounting standards in many countries. This research aims to identify the determinants of the voluntary disclosure of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) accounting standards and the corporate social responsibility (CSR) disclosure by Islamic insurance (takaful) companies in the Southeast Asia (SEA) and Gulf Cooperation Council (GCC) regions. This study examines whether the governance structure and societal variables of takaful companies, have any relationship with the disclosure of the AAOIFI standards. This study uses a sample of 55 takaful companies in the SEA and the GCC regions. Content analysis is used to extract disclosure items from the 2014 annual reports. Agency theory, stakeholder theory and political economy theory are argued to support the voluntary disclosure of the AAOIFI accounting standards and the CSR disclosure of takaful companies. A multiple regression analysis is used to examine the relationships of the variables in the model. The results show that corporate governance (CG) strength has a positive and significant effect on the voluntary disclosure of the AAOIFI accounting standards and CSR disclosure. On the other hand, the level of political right and civil repression has negative and significant effects on both the voluntary disclosure of the AAOIFI accounting standards and the CSR disclosures. In this study, it is found that takaful companies in countries which practice common law disclose more information on CSR than takaful companies in the common law countries. CG plays an important role in the voluntary disclosure of the AAOIFI accounting standards. However, interestingly, Shari’ah Supervisory Board (SSB) as a critical part of Shari’ah governance system plays a limited role in influencing disclosure in the annual reports of takaful companies. SSB should be able to contribute more by influencing the decisions of the managing board if they follow their suggested role proposed by the Governance Standard for Islamic Financial Institutions (GSIFI) No 2: Shari’ah Review. Additionally, the GSIFI No. 3: Internal Shari’ah Review should also be adopted by takaful companies to harmonise the process of Shari’ah review and opinion. Thesis
spellingShingle 2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies
state Terengganu
subject Dissertations, Academic
Voluntary disclosure (Accounting)
Islamic financial institutions – Standards
Accounting standards – Islamic finance
Auditing – Islamic perspective
Takaful – Financial reporting
summary The current standards of financial reporting, which are based on conventional frameworks, seem insufficient to guide the Islamic financial institutions in their preparation of the financial reports. Currently, IFIs worldwide apply different accounting standards due to the lack of enforcement of international Islamic accounting standards in many countries. This research aims to identify the determinants of the voluntary disclosure of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) accounting standards and the corporate social responsibility (CSR) disclosure by Islamic insurance (takaful) companies in the Southeast Asia (SEA) and Gulf Cooperation Council (GCC) regions. This study examines whether the governance structure and societal variables of takaful companies, have any relationship with the disclosure of the AAOIFI standards. This study uses a sample of 55 takaful companies in the SEA and the GCC regions. Content analysis is used to extract disclosure items from the 2014 annual reports. Agency theory, stakeholder theory and political economy theory are argued to support the voluntary disclosure of the AAOIFI accounting standards and the CSR disclosure of takaful companies. A multiple regression analysis is used to examine the relationships of the variables in the model. The results show that corporate governance (CG) strength has a positive and significant effect on the voluntary disclosure of the AAOIFI accounting standards and CSR disclosure. On the other hand, the level of political right and civil repression has negative and significant effects on both the voluntary disclosure of the AAOIFI accounting standards and the CSR disclosures. In this study, it is found that takaful companies in countries which practice common law disclose more information on CSR than takaful companies in the common law countries. CG plays an important role in the voluntary disclosure of the AAOIFI accounting standards. However, interestingly, Shari’ah Supervisory Board (SSB) as a critical part of Shari’ah governance system plays a limited role in influencing disclosure in the annual reports of takaful companies. SSB should be able to contribute more by influencing the decisions of the managing board if they follow their suggested role proposed by the Governance Standard for Islamic Financial Institutions (GSIFI) No 2: Shari’ah Review. Additionally, the GSIFI No. 3: Internal Shari’ah Review should also be adopted by takaful companies to harmonise the process of Shari’ah review and opinion.
title 2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies
title_full 2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies
title_fullStr 2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies
title_full_unstemmed 2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies
title_short 2017_Voluntary Disclosure of The Accounting and Auditing Organizations for Islamic Financial Institutions Standards by Takaful Companies
title_sort 2017_voluntary disclosure of the accounting and auditing organizations for islamic financial institutions standards by takaful companies