The impact of multi-layer governance on bank risk disclosure in emerging markets

the case of Middle East and North Africa

Ahmed A. Elamer, Collins Ntim, Hussein A. Abdou, Alaa Mansour Zalata, Mohamed Elmagrhi

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This study examines the impact of multi-layer governance mechanisms on the level of bank risk disclosure. Using a large dataset from 14 Middle East and North Africa (MENA) countries over a period of 8 years, our findings are three-fold. First, our results suggest that the presence of a Sharia supervisory board is positively associated with the level of risk disclosure. Second and at the bank-level, we find that ownership structures have a positive effect on the level of risk disclosure. At the country-level, our evidence suggests that control of corruption has a positive effect on the level of bank risk disclosure. Our study is, therefore, a major departure from much of the existing accounting literature that offers new crucial insights that show that firms’ disclosure choices are not mainly shaped by firm-level (internal) governance arrangements, but also country-level (external) governance and religious factors. Our findings have important implications for corporate boards, investors, regulatory authorities, standards-setters and governments relating to the development, implementation and enforcement of corporate and national governance standards.
Original languageEnglish
Pages (from-to)246-281
Number of pages36
JournalAccounting Forum
Volume43
Issue number2
Early online date22 Apr 2019
DOIs
Publication statusPublished - May 2019

Fingerprint

Middle East and North Africa
Bank risk
Governance
Risk disclosure
Emerging markets
Authority
Supervisory board
Governance mechanisms
Internal governance
Ownership structure
Corporate boards
Disclosure
Factors
Enforcement
Corruption
Investors
Government

Cite this

Elamer, Ahmed A. ; Ntim, Collins ; Abdou, Hussein A. ; Zalata, Alaa Mansour ; Elmagrhi, Mohamed. / The impact of multi-layer governance on bank risk disclosure in emerging markets : the case of Middle East and North Africa. In: Accounting Forum. 2019 ; Vol. 43, No. 2. pp. 246-281.
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The impact of multi-layer governance on bank risk disclosure in emerging markets : the case of Middle East and North Africa. / Elamer, Ahmed A.; Ntim, Collins; Abdou, Hussein A.; Zalata, Alaa Mansour; Elmagrhi, Mohamed.

In: Accounting Forum, Vol. 43, No. 2, 05.2019, p. 246-281.

Research output: Contribution to journalArticle

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