The Impact of Shariah Governance and Its Consequences on CSR Disclosure: Evidence from Islamic Banks in Bangladesh
Author (s)
Jaynob Sarker & Mohammad Shahidul Hoque
Abstract
The purpose of current study is to reveal the level of CSRD practices of the Islamic banks operating in Bangladesh as well as to investigate the influence of Shariah Governance (SG) factors on CSR disclosure practices. To collect data for this study a nine-dimensional testable disclosure index was prepared on the basis of AAOIFI, Governance Standard No. 7, 2010 and from prior studies. Then data were collected from 8 Islamic banks for 10 years span ranging from 2013 to 2022 comprising 80 observations through content analysis of the annual reports available in the sampled banks websites. Each line of the annual report has been examined to identify whether any bank reveals CSR data specified in the CSRD index and if they do then receive a score of (1); if not, receive a score of (0). However, to analyze the panel data set the study employed OLS regression model to test the relationship among the hypothesized variables and generated descriptive statistics by using STATA Software version 16. The data analysis result reveals a relatively high level of CSR disclosure (66.36%) practices in the sampled Islamic banks. Moreover, it has been found that variables of SG included in this study explain about 72% of CSRD practices of sampled Islamic banks. The study also finds that board size, SSB size, and number of independent directors in the board have significant positive influence on CSRD. On the other, AC size, cross membership of board members show significant negative influence on CSRD. But, the result of gender composition and AC meeting indicate insignificant negative influence on CSRD. Thus, findings of this study provide new insights about the role of shariah governance in enhancing CSRD practices among the shariah based banks of Bangladesh and as such help improve their overall performance and sustainability.
Keywords: Shariah governance, CSR, CSRD, Consequences, Islamic Banks.
| Title: | The Impact of Shariah Governance and Its Consequences on CSR Disclosure: Evidence from Islamic Banks in Bangladesh |
|---|---|
| Author: | Jaynob Sarker & Mohammad Shahidul Hoque |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2709 |
| Media: | Online |
| Volume: | 53 |
| Issue: | 1 |
| Issue publication (Year): | 2026 |
| Acceptance Date: | 11/11/2026 |
| Date of Publication: | 14/11/2026 |
| PDF URL: | http://ijsab.com/wp-content/uploads/2709.pdf |
| Free download: | Available |
| Page: | 167-197 |
| First Page: | 167 |
| Last Page: | 197 |
| Paper Type: | Research Paper |
| Current Status: | Published |
Cite This Article:
Sarker, J. & Hoque, M. S. (2026). The Impact of Shariah Governance and Its Consequences on CSR Disclosure: Evidence from Islamic Banks in Bangladesh, International Journal of Science and Business, 53(1), 167-197. https://doi.org/10.58970/IJSB.2709
About Author (s)
Jaynob Sarker (Corresponding Author), Assistant Professor, Department of Business Administration, Leading University, Sylhet-3112, Bangladesh. ORCID: https://orcid.org/0009-0005-9578-995X
Mohammad Shahidul Hoque, Professor, Department of Business Administration, Shahjalal University of Science & Technology, Sylhet-3114, Bangladesh.
DOI: https://doi.org/10.58970/IJSB.2709
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