Journal of Financial Reporting and Accounting 

About: Journal of Financial Reporting and Accounting is an academic journal published by Emerald Publishing Limited. The journal publishes majorly in the area(s): Accounting & Business. It has an ISSN identifier of 2042-5856. Over the lifetime, 458 publications have been published receiving 5801 citations. The journal is also known as: JOFRA & JFRA.

The determinants of bank profitability: empirical evidence from European banking sector

Abstract: Purpose The purpose of this paper is to investigate the relationship between bank-specific characteristics and profitability in European banking sector to find the role of internal factors in achieving high profitability. Design/methodology/approach A regression analysis is built on an unbalanced panel data set comprising 175 observations of 35 top European banks over the period 2009-2013. To this end, the empirical data are collected from Bankscope and a comprehensive set of internal characteristics is examined. Findings All the determinant variables included in the model have statistically significant impacts on European banks’ profitability. However, the effects are not uniform across profitability measures. Regression findings reveal that size and capital ratio are significant company-level determinants of bank profitability in Europe, while higher loan loss provisions result in lower profitability levels. Findings also suggest that banks with higher deposits and loans ratio tend to be more profitable but the effects on profitability are statistically insignificant in some cases. Practical implications This study has considerable policy implications, as the performance of the European banking sector depends on its efficiency, profitability and competitiveness. In view of these findings, some suggestions may be functional for bank regulatory authorities to intensify and sustain robustness and stability of the banking sector. Originality/value The results provide interesting insights into the characteristics and practices of profitable banks in Europe. Few econometric studies have empirically explored the determinants of bank profitability in Europe so far, even though similar studies have been conducted in several developed countries. Therefore, this paper tries to close an important gap in the existing literature improving the understanding of bank profitability in Europe.

Corporate social responsibility disclosure: A comparison between Islamic and conventional financial institutions

Abstract: Purpose – The purpose of this paper is to examine the influence of Islam on corporate social responsibility disclosure (CSRD) in Islamic financial institutions (IFIs).Design/methodology/approach – Using the content analysis approach, the paper examines the influences of Islam on CSRD by looking into the annual reports of 21 conventional financial institutions (CFIs) and 21 IFIs operating in the Gulf region.Findings – The results show significant differences in the level and the extent of the disclosure between IFIs and CFIs, largely due to the disclosure made by IFIs of religions related themes and information, including Shari'a supervisory board reports, the “Zakah” and charity donation, and free interest loan.Originality/value – This paper's contribution to the literature is twofold: the paper reveals the actual difference of CSRD between IFIs and non‐IFIs, by comparing the disclosures made by IFIs and non‐IFIs; and the paper identifies the extent of influence of Islam upon the CSRD of IFIs.

Board diversity and corporate social responsibility in Jordan

Abstract: Purpose This study aims to investigate the impact of board diversity characteristics, namely, independence, gender, age and nationality of directors on the level of corporate social responsibility (CSR) disclosures. Design/methodology/approach Content analysis was used to determine CSR disclosure. This study used panel data analysis to investigate the influence of board diversity characteristics on CSR disclosures. Findings Panel data analysis show that the level of CSR disclosure has increased over the period of study. Results also reveal a positive and significant association between the level of CSR disclosure and board diversity variables. Research limitations/implications This study examined only companies listed on Amman Stock Exchange. Therefore, the generalisation of the results might be limited to the listed companies only. Practical implications Findings are relevant to policymakers, professional organisations and practitioners in Jordan and in other Arab countries. Social implications The role of women in the boardroom is important to ensure more CSR activities by the listed companies. Jordan being a Muslim country should take the initiative to introduce laws to increase the number of women to the board. Originality/value This study offers significant contributions to existing CSR literature in Jordan and in other Arab countries by introducing female directors. Findings are important to policymakers. They should implement quotas for women in the boardroom, and adopting such a policy will increase the participation of women in the decision-making process of the companies and reduce gender bias.

Family Business, Board Dynamics and Firm Value: Evidence from Malaysia

Abstract: Most research concentrating on family and non‐family businesses with firm performance is conducted overseas with little research actually taking place in Malaysia. Thus, this study focuses on the relationship between family controlled businesses and corporate governance mechanisms with firm value among Malaysian companies. The sample size of this study is 896 companies that were listed on Bursa Malaysia from 2000 to 2003. The findings reveal that corporate governance mechanisms do have an influence on firm value in Malaysia. However, not all elements of governance mechanisms are significant, and the effects differ between family‐businesses and non‐family businesses. The results indicate as expected that board size and leadership structure affect the firm value for all companies. Further analysis shows that family businesses do practice separate leadership structure whilst board size contributes positively towards better performance in non‐family companies. More importantly, family and non‐family businesses are different in terms of corporate governance practices. Thus, regulators need to give additional attention to the unique setting of the family companies.

Intellectual Capital Reporting and Corporate Characteristics of Public‐Listed Companies in Malaysia

Abstract: This study examines the extent and nature of voluntary intellectual capital (IC) disclosure by public‐listed companies in Malaysia and how the disclosure may be explained by the economics or other rationale of corporate disclosure Those intangible assets that are required to be disclosed under the extant accounting standards were specifically excluded from this study The top 30 and the bottom 30 companies were selected from the list of top 100 largest public‐listed companies by market capitalization at the end of 2003 Content analysis was used to measure the extent of voluntary IC disclosure in the 2003 annual reports of the selected companies This study found that the voluntary disclosure of IC information is generally not extensive among the publiclisted companies in Malaysia and narrative description of their IC attributes is the most often adopted format The findings suggest that the IC disclosure behaviour of the sample companies may be explained based on both economic and non‐economic rationale Implications of the findings are discussed