Anti-bribery information

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 effect of anti-bribery disclosure on bank’s performance. Design/methodology/approach - This study uses in the first stage the content analysis to explore the extent of anti-bribery disclosure in the annual reports of 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 performance. Findings - The empirical results show that the anti-bribery disclosure is at low levels for all banks and that there are no significant differences in overall anti-bribery disclosure between the two banking 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 performance is not significant as this kind of information is not clearly disclosed in the annual reports of the banks. Research limitations/implications - The study suggests to the UAE central bank and financial markets regulators to design a framework of anti-corruption disclosure by considering the international anti-corruption regime as an effort to respond to the international development of the bribery practices. Originality/value - Anti-bribery concerns 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-bribery disclosure within an emerging market in the objective to improve the transparency in combatting the bribery.