DoesShariahcommittee composition influenceShariahgovernance disclosure?

Purpose - The purpose of this paper is to investigate the empirical linkage between the composition ofShariahCommittee and the extent ofShariahgovernance disclosure in 16 licensed Islamic banks in Malaysia. Design/methodology/approach - This paper adopted a multiple regression analysis to test the association between the composition ofShariahCommittee and the extent ofShariahgovernance disclosure. A disclosure index was developed to measure the extent ofShariahgovernance disclosure made by the Islamic banks. Whereas to measure the extent ofShariahgovernance disclosure, this study used content analysis as a method of coding qualitative information in the annual reports. Findings - Using 2009 data, the study found a significant association between different compositions of theShariahCommittee in the Malaysian Islamic banks and theirShariahgovernance disclosure level before the introduction of theShariahGovernance Framework (SGF). However, because of less variation in the composition ofShariahCommittee after the introduction of SGF 2010, a weak linkage was found between the composition ofShariahCommittee and the extent ofShariahdisclosure of Malaysian Islamic banks in 2013. Research limitations/implications - Findings of this study offer several implications for further improvements of the Malaysian Islamic banking sector in particular, and other Islamic banks globally. As better composition ofShariahCommittee in terms of its size, academic background and other relevant expertise would result in effective monitoring system leading to better practices ofShariahdisclosure, this finding highlights the relevance and important role of theShariahCommittee in improving voluntaryShariahdisclosure level of the Islamic banks. This finding suggests that ample focus has to be channelled in strengthening the composition ofShariahCommittee in crafting future development of SGF in Malaysia. It is also suggested that Islamic banks need to give priority in providing more education and training in various areas of expertise to theirShariahCommittee members that would result in greater confidence of investors, stakeholders and the society on the information disclosed by the banks. Originality/value - The novelty of this paper lies in highlighting the importance of different composition ofShariahCommittee in determining the extent of voluntary disclosure made onShariahmatters by the Islamic banks.