International Journal of Accounting and Management Sciences (IJAMS)
IJAMS Vol.4 No.2 April 2025
DOI https://www.doi.org/10.56830/IJAMS04202504
Authors
Nouran Elsaid Nabil Mohamed Zowied
Abstract
Based on agency theory, the main aim of this research is to examine the effectiveness of
Shariah Supervisory Board (SSB) characteristics on Corporate Social Responsibility (CSR)
disclosure depending on the AAOIFI standard no.7. standard. Using unbalanced sampling,
the research covered 64 Islamic banks from 13 countries in the Middle East and North Africa
(MENA) region for the period 2012–2022. The study applies system generalized method of
moments (SGMM) for hypothesis testing to control for potential endogeneity, reverse
causality, and dynamic heterogeneity respective dependent variables. The statistical results
reveal that SSBI has a significant relationship with CSR disclosure. The findings have
important implications for managers, policymakers, and stakeholders’ perspectives of
MENA IBs. Priority should be given by managers of IBs in MENA countries to CSR activities
that are in line with their main business objectives, such as promoting ethical and
sustainable financing. This can help improve the bank’s reputation and promote customer
loyalty, which ultimately contributes to the bank’s performance. Future research can
examine moderating factors, such as FinTech, in the relationship between CSR and IB’s
performance, which have not been covered in Islamic banking context, as the FinTech
technology is currently a very interesting and growing area in IBs.
Keywords: Corporate Social Responsibility, Shariah Supervisory Board, MENA, Islamic
Banks, AAOIF
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