Extent and impact on banking performance of
UAE Islamic and conventional banks
Haitham Nobanee and Nejla Ellili
College of Business, Abu Dhabi University, Abu Dhabi, United Arab Emirates
Purpose –This paper aims to explore the extent of anti-bribery disclosures in the annual reports of the
banks listed on UAE ﬁnancial markets by differentiating between Islamic and conventional banks and
examine the effectof anti-bribery disclosure on bank’s performance.
Design/methodology/approach –This study uses in the ﬁrst stage the content analysisto explore the
extent of anti-bribery disclosure in the annual reportsof the banks. In the second stage, the dynamic panel
two-step robust system has been applied to study the impact of the anti-bribery disclosure on banking
Findings –The empirical resultsshow that the anti-bribery disclosure is at low levels for all banks and that
there are no signiﬁcant differencesin overall anti-bribery disclosure between the twobanking systems while
there are signiﬁcant differences in “anti-bribery human resources practices”between Islamic and
conventional banks. The dynamic panel data results show that the association between the anti-bribery
disclosure and the bank’s performanceis not signiﬁcant as this kind of information is not clearly disclosedin
the annual reportsof the banks.
Research limitations/implications –The study suggests to the UAE central bank and ﬁnancial
markets regulators to designa framework of anti-corruptiondisclosure by considering the international anti-
corruptionregime as an effort to respond to the international developmentof the bribery practices.
Originality/value –Anti-briberyconcerns all the banks over the world and this research is the ﬁrst study
that constructs an index to measure the anti-bribery disclosure and helps in providing the status of the
banking industry in terms of anti-briberydisclosure within an emerging market in the objective to improve
the transparencyin combatting the bribery.
Keywords Islamic banks, Content analysis, Panel data, Conventional banks, Banking performance,
Paper type Research paper
In the past decade, corruption and bribery become very important concerns of all
governments and companies all around the globe. Bribery is deﬁned by Transparency
International (2009) as “the giving or receiving bribes, kickbacks, facilitation payment or
similar such as gifts, entertainments and hospitality, agents fees or similar.”To combat
further briberyat the international level,in 1997, the Organisation for EconomicCo-operation
and Developmenthas established a conventionthat has for objective the reductionof bribery
in internationalbusiness transactionsbetween the companies in themember countries.
By far, the combat of bribery is neglected in the research about anti-corruption
disclosure. The ﬁght against corruption has gained a slowly importanceand few guidelines
of proper anti-corruption disclosure have been developed (Gordon and Wynhoven, 2003;
JEL classiﬁcation –C33, G32, G34
On behalf of all authors, the corresponding author states that there is no conﬂict of interest.
Journalof Financial Crime
Vol.27 No. 2, 2020
© Emerald Publishing Limited
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