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Abstract

This study investigates the factors influence the compliance level of Shariah responsibility disclosure among Malaysian Islamic Banking. Islamic Financial Institutions (IFIs) are engaging in product development activities to cater the needs of a wide range of users. IFI introduced the Shariah Committee in all Islamic banks and Islamic Banking Scheme, banks in order to guide and ensure the compliance with the Shariah principles and Shariah responsibility disclosure. This study examines the relationship between bank’s size, financial performance and listing status towards the Shariah responsibility disclosure. By using a simple sampling method, 16 Malaysian Islamic Banks were selected for inclusion in the study based on its annual reports from 2008 until 2012. The result showed that bank’s size and financial performance are the significant factors and positively associate towards the Shariah responsibility disclosure. The study also finds that, there is a significant negative association between ownership status and the Shariah responsibility disclosure. The finding of this study would provide better understanding of the factors influence the compliance level of Shariah Responsibility Disclosure among Malaysian Islamic Banking.

Keywords: Islamic Banking, Islamic Financial Institutions, Shariah Responsibility Disclosure.

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