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The Effect of Accounting Disclosure about Sustainability Reports on the Ability of Banks to Going Concern - Case Study of Arab Bank

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  • Ammar Daher Bashatweh
  • Salam Nawaf AlMomani

Abstract

The main objective of the study was to identify the effect of accounting disclosure of sustainability reports on Going Concern in the Arab Bank. To achieve the objective of the study, the content of the sustainability reports issued by Arab Bank were analyzed to identify the disclosure level for the economic, environmental and social dimensions in accordance to the (GRI,2014) initiative indicators. Furthermore, the Going Concern ability of the bank was measured using a set of financial indicators selected based on the results reported in previous literature addressing Continuity in commercial banks. Data used in the current study was taken from the sustainability reports and the annual statements issued by The Arab Bank (2010-2014). The study concluded that there is a significant effect of the disclosure of the dimensions of all the sustainability reporting on the return on assets and the return on equity). The study recommended the need for Arab Bank to disclose the dimensions of sustainability dimension in accordance to the International disclosure Initiative (GRI, 2014).There is also a need for more disclosure of the accounting activities in annual statements to provide a clearer picture for the sustainability accounting statements and annual statements which reflect the Arab Bank concern with respect to sustain the community resources and its ability to Concern Going.

Suggested Citation

  • Ammar Daher Bashatweh & Salam Nawaf AlMomani, 2020. "The Effect of Accounting Disclosure about Sustainability Reports on the Ability of Banks to Going Concern - Case Study of Arab Bank," Business and Economic Research, Macrothink Institute, vol. 10(2), pages 234-249, June.
    • Handle: RePEc:mth:ber888:v:10:y:2020:i:2:p:234-249
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    References listed on IDEAS

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    1. Kittiya Yongvanich & James Guthrie, 2006. "An extended performance reporting framework for social and environmental accounting," Business Strategy and the Environment, Wiley Blackwell, vol. 15(5), pages 309-321, September.
    2. Leftwich, Rw & Watts, Rl & Zimmerman, Jl, 1981. "Voluntary Corporate Disclosure - The Case Of Interim Reporting," Journal of Accounting Research, Wiley Blackwell, vol. 19, pages 50-77.
    3. Rhys Andrews & George A. Boyne & Jennifer Law & Richard M. Walker, 2012. "Strategy, Environment and Performance," Palgrave Macmillan Books, in: Strategic Management and Public Service Performance, chapter 7, pages 129-148, Palgrave Macmillan.
    4. Yousuf Kamal & Craig Deegan, 2013. "Corporate Social and Environment-related Governance Disclosure Practices in the Textile and Garment Industry: Evidence from a Developing Country," Australian Accounting Review, CPA Australia, vol. 23(2), pages 117-134, June.
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    Cited by:

    1. Nagalingam Nagendrakumar & Kalubowilage Navodya Nilupulee Alwis & Udage Arachchige Kaveesha Eshani & Seekku Baduge Ushani Kaushalya, 2022. "The Impact of Sustainability Practices on the Going Concern of the Travel and Tourism Industry: Evidence from Developed and Developing Countries," Sustainability, MDPI, vol. 14(24), pages 1-21, December.

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    More about this item

    Keywords

    Sustainability Reports; Accounting disclosure; Going Concern; Arab Bank;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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