Anti-bribery information. Extent and impact on banking performance of UAE Islamic and conventional banks
| DOI | https://doi.org/10.1108/JFC-11-2019-0144 |
| Pages | 683-695 |
| Published date | 03 February 2020 |
| Date | 03 February 2020 |
| Author | Haitham Nobanee,Nejla Ellili |
Anti-bribery information
Extent and impact on banking performance of
UAE Islamic and conventional banks
Haitham Nobanee and Nejla Ellili
College of Business, Abu Dhabi University, Abu Dhabi, United Arab Emirates
Abstract
Purpose –This paper aims to explore the extent of anti-bribery disclosures in the annual reports of the
banks listed on UAE financial markets by differentiating between Islamic and conventional banks and
examine the effectof anti-bribery disclosure on bank’s performance.
Design/methodology/approach –This study uses in the first stage the content analysisto explore the
extent of anti-bribery disclosure in the annual reportsof the banks. In the second stage, the dynamic panel
two-step robust system has been applied to study the impact of the anti-bribery disclosure on banking
performance.
Findings –The empirical resultsshow that the anti-bribery disclosure is at low levels for all banks and that
there are no significant differencesin overall anti-bribery disclosure between the twobanking systems while
there are significant differences in “anti-bribery human resources practices”between Islamic and
conventional banks. The dynamic panel data results show that the association between the anti-bribery
disclosure and the bank’s performanceis not significant as this kind of information is not clearly disclosedin
the annual reportsof the banks.
Research limitations/implications –The study suggests to the UAE central bank and financial
markets regulators to designaframework of anti-corruptiondisclosure by considering the international anti-
corruptionregime as an effort to respond to the international developmentof the bribery practices.
Originality/value –Anti-briberyconcerns all the banks over the world and this research is the first study
that constructs an index to measure the anti-bribery disclosure and helps in providing the status of the
banking industry in terms of anti-briberydisclosure within an emerging market in the objective to improve
the transparencyin combatting the bribery.
Keywords Islamic banks, Content analysis, Panel data, Conventional banks, Banking performance,
Anti-bribery disclosure
Paper type Research paper
1. Introduction
In the past decade, corruption and bribery become very important concerns of all
governments and companies all aroundthe globe. Bribery is defined by Transparency
International (2009) as “the giving or receiving bribes, kickbacks, facilitation payment or
similar such as gifts, entertainments and hospitality, agents fees or similar.”To combat
further briberyat the international level,in 1997, the Organisation for EconomicCo-operation
and Developmenthas established a conventionthat has for objective the reductionof bribery
in internationalbusiness transactionsbetween the companies in themember countries.
By far, the combat of bribery is neglected in the research about anti-corruption
disclosure. The fight against corruption has gained a slowly importanceand few guidelines
of proper anti-corruption disclosure have been developed (Gordon and Wynhoven, 2003;
JEL classification –C33, G32, G34
On behalf of all authors, the corresponding author states that there is no conflict of interest.
Anti-bribery
information
683
Journalof Financial Crime
Vol.27 No. 2, 2020
pp. 683-695
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-11-2019-0144
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
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