The impact of disclosure and Shariah governance on performance in Islamic banks (fixed-effects GLS regression)
| Model 3 | |||||
|---|---|---|---|---|---|
| ROA | ROE | ||||
| Predict sign | Coeff | Prob | Coeff | Prob | |
| DCI | + | −0.7692*** | 0.00 | −0.3734*** | 0.00 |
| BOD-index | + | 0.0077** | 0.04 | 0.0134*** | 0.00 |
| AC-index | + | 0.0625*** | 0.00 | −0.0335*** | 0.00 |
| SSB-index | + | 0.0079 | 0.13 | 0.0288*** | 0.00 |
| SIZE | + | −0.0745*** | 0.00 | −0.0848*** | 0.00 |
| LEV | – | −0.0200* | 0.07 | 0.0082 | 0.42 |
| AGE | + | 0.0092*** | 0.00 | 0.0039*** | 0.00 |
| Constant | + | 1.5701*** | 0.00 | 2.1879 *** | 0.00 |
| R2 | 0.1207 | 0.0667 | |||
| Wald chi2 | 57.16 | 3684.68 | |||
| Prob > chi2 | 0.0000*** | 0.0000*** | |||
| Model 3 | |||||
|---|---|---|---|---|---|
| ROA | ROE | ||||
| Predict sign | Coeff | Prob | Coeff | Prob | |
| + | −0.7692*** | 0.00 | −0.3734*** | 0.00 | |
| + | 0.0077** | 0.04 | 0.0134*** | 0.00 | |
| + | 0.0625*** | 0.00 | −0.0335*** | 0.00 | |
| + | 0.0079 | 0.13 | 0.0288*** | 0.00 | |
| + | −0.0745*** | 0.00 | −0.0848*** | 0.00 | |
| – | −0.0200* | 0.07 | 0.0082 | 0.42 | |
| + | 0.0092*** | 0.00 | 0.0039*** | 0.00 | |
| + | 1.5701*** | 0.00 | 2.1879 *** | 0.00 | |
| 0.1207 | 0.0667 | ||||
| 57.16 | 3684.68 | ||||
| 0.0000*** | 0.0000*** | ||||
Note(s): This table presents the regression results of different measures of disclosure and corporate governance on performance. With: DCI: Disclosure index; BOD-index = average of the value assigned to each administration member; AC-index = average value assigned to each audit committee member; SSB-index = average value assigned to each Shariah council member; Size = Log Total Asset; Lev = Total Debt to Total Assets; Age: number of years since foundation. ***, ** and *, indicates significant at 1%, 5% and 10% levels, respectively