Corporate Governance and Risk Disclosure in Islamic Banks: Evidence from Jordan

This study aimed to test the impact of corporate governance on risk disclosure levels in Jordanian Islamic banks. It analyzed the content of financial reports from Jordanian Islamic banks listed on the Amman Stock Exchange during the period from 2012 to 2017. The effects of corporate governance and various control variables on risk disclosure were measured using Ordinary Least Squares (OLS) regression analysis. The results showed that the risk disclosure level in Jordanian Islamic banks is 66.8%. Moreover, board independence, CEO-Chairperson separation, audit committee effectiveness, ownership concentration, and institutional ownership have a significant impact on risk disclosure levels in financial reporting. Finally, the results indicated that board size, Shari’a Supervisory Board size, and financial leverage do not significantly affect risk disclosure levels, whereas the bank’s size and profitability do have a significant effect.