Does Corporate Governance Influence Islamic Green Banking Disclosure? The Moderating Role of Bank Size

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Researchers can adopt the IGBDI as a culturally-tailored disclosure metric for Islamic banking, and explore its application in other contexts.

🏢実務担当者:Islamic banks should align board composition and committee structures with their size to optimize green disclosure outcomes.

🏛政策担当者:Regulators can use the IGBDI to develop Shariah-compliant green disclosure standards for Islamic financial institutions.

Purpose — This study aims to investigate how corporate governance mechanisms influence Islamic green banking disclosure in Indonesia and Malaysia, and examine the moderating role of bank size. It addresses a critical gap in sustainability disclosure research specific to Islamic financial institutions (IFIs). Design/Methodology/Approach — The Islamic Green Banking Disclosure Index (IGBDI) is constructed based on maqāṣid al-Sharīʿah (objectives of Islamic law) and ḥifẓ al-biʾah (environmental preservation) principles. Panel data from 13 Indonesian and 8 Malaysian Islamic banks covering the period 2009–2024 are analysed using a fixed-effects regression model with white cross-sectional standard errors. The study also conducts robustness checks using several methods. Findings — The study finds that the Board of Directors and Risk Management Committee positively affect Islamic green banking disclosure, while the Board of Commissioners negatively influences disclosure. The Board of Independent Commissioners shows a marginally positive effect, whereas the Sharīʿah Supervisory Board (SSB) and Audit Committee exhibit no significant direct effects. Bank size negatively moderates the effect of the Board of Commissioners but enhances the positive influence of Independent Commissioners and the Risk Management Committee, indicating that governance effectiveness depends on institutional scale. Originality/Value — This study is among the first to develop an IGBDI grounded in Islamic principles, integrating corporate governance and sustainability frameworks. It demonstrates how organisational scale interacts with governance mechanisms to shape disclosure, providing novel theoretical and practical insights for Islamic banking. Research Limitations/Implications — The analysis is limited to Indonesia and Malaysia, offering context-specific evidence. Future studies could extend to other jurisdictions and include qualitative data to capture internal governance dynamics. Practical Implications — The findings emphasise that regulators and Islamic banks should calibrate governance structures proportionally to institutional capacity to enhance sustainability reporting without creating inefficiencies.

• semanticscholar https://doi.org/10.55188/ijifsd.v18i1.1194first seen 2026-05-15 18:40:52 · last seen 2026-06-15 05:27:57