This study aims to assess the extent of Islamic banks’ anticorruption disclosure (ACD) practices. It compares them with their counterpart, the conventional banks in Indonesia.
The data were collected from the 2018 sustainability report of 5 Islamic and 12 conventional banks in Indonesia as a sample size. To measure the extent of ACD practice, an index was adopted from (Joseph et al. 2016) comprising 40 items. The utilization of 2018 is based on the Indonesian Financial Service Authority (Otoritas Jasa Keuangan) legislation, which mandates that the banking sector must provide sustainability reporting by 2018.
A nonparametric test was conducted as the data were not distributed normally. Based on the results of the Kruskal–Wallis test, there is no significant difference between Islamic and conventional banks in disclosing information related to anticorruption.
The results are consistent with the study by (Joseph et al. 2016), which found that Indonesian companies, in general, are still in the early stage of conforming to the expectation of the disclosure practice related to anticorruption information.
The regulators and authorities do not specifically encourage Indonesian banks to level up their corporate reporting. Thus, it becomes another reason that Indonesian banks still lack proper disclosure of anticorruption information.
To the best of the authors’ knowledge, this study is one of the few studies examining the extent of Indonesian banks’ ACD.
