CEO’s Characteristics and CSR Disclosure: Evidence from Islamic Banks across MENA Region

Main Article Content

Jamel Chouaibi
Wafa Jilani
Salim Chouaibi


The purpose of this paper was to explore the relationship between the characteristics of the chief executive officer (CEO) and corporate social responsibility (CSR) of banks operating in the Middle East and North African (MENA) countries. The study hypotheses was tested using a multiple linear regression model by examining data from a sample of 97 Islamic banks operating in the MENA region between 2015 and 2019. The results were robustly checked and the findings indicated that both CEO’s overconfidence, experience and education appear to have a significantly positive effect on the CSR disclosure. Furthermore, the results of multiple linear regressions showed that older CEO’s have a negative and significant impact on the level of CSR disclosure. This research bridges the gap between theory and practice in many aspects. Thus, although a substantial volume of research has examined sustainable advantage, one vital aspect of CSR has been largely unexplored. This study fills this void in the literature, namely the interaction between CEO’s characteristics and CSR disclosure. An explicit CSR disclosure may improve social well-being in emerging markets.

Article Details

How to Cite
Jamel Chouaibi, Wafa Jilani, & Salim Chouaibi. (2023). CEO’s Characteristics and CSR Disclosure: Evidence from Islamic Banks across MENA Region. Asian Academy of Management Journal, 28(1), 345–375.
Original Articles


Abdelsalam, O., Dimitropoulos, P., Elnahass, M., & Leventis, S. (2016). Earnings management behaviors under different monitoring mechanisms: The case of Islamic and conventional banks. Journal of Economic Behavior and Organization, 132, 155–173.

Ahmed, A. S., & Duellman, S. (2013). Managerial overconfidence and accounting conservatism. Journal of Accounting Research, 51(1), 1–30.

Al-Shammari, M. R. A., & Al-Shammari, H. A. (2019). CEO narcissism and corporate social responsibility: Does CEO narcissism affect CSR focus? Journal of Business Research, 104, 106–117.

Alshbili, I., Elamer, A. A., & Beddewela, E. (2019). Ownership types, corporate governance and corporate social responsibility disclosures. Accounting Research Journal, 33(1), 148–166.

Aracil, E. (2019). Corporate social responsibility of Islamic and conventional banks. International Journal of Emerging Markets, 14(4), 582–600.

Aribi, Z. A., & Arun, T. (2015). Corporate social responsibility and Islamic financial institutions (IFIs): Management perceptions from IFIs in Bahrain. Journal of Business Ethics, 129(4), 785–794.

Banerjee, S. H. M., & Nanda, V. (2018). Does CEO bias escalate repurchase activity? Journal of Banking & Finance, 93, 105–126.

Barker III, V. L., & Mueller, G. C. (2002). CEO characteristics and firm R&D spending. Management Science, 48(6), 782–801.

Bavik, Y. L., Shao, B., Newman, A., & Schwarz, G. (2021). Crisis leadership: A review and future research agenda. The Leadership Quarterly, 32(6), 101518.

Borgi, H., Ghardallou, W., & AlZeer, M. (2021). The effect of CEO characteristics on financial reporting timeliness in Saudi Arabia. Accounting, 7(6), 1265–1274.

Beber, A., & Fabbri, D. (2012). Who times the foreign exchange market? Corporate speculation and CEO characteristics. Journal of Corporate Finance, 18(5), 1065–1087.

Besar, M. H. A. H., Sukor, M. E. A., Muthalib, N. A., & Gunawa, A. Y. (2009). The practice of Shariah review as undertaken by Islamic banking sector in Malaysia. International Review of Business Research Papers, 5(1), 294–306.

Brahmana, R. K., You, H. W., & Kontesa, M. (2020). Does CEO power matter for the performance of retrenchment strategy? Journal of Strategy and Management, 14(1), 1–18.

Chouaibi, J., & Chouaibi, S. (2020). Does value added of intellectual capital influence voluntary disclosure? The moderating effect of CSR disclosure. Journal of Accounting and Management Information Systems, 19(4), 651–681.

Chouaibi, S., Chouaibi, J., & Rossi, M. (2021). ESG and corporate financial performance: The mediating role of green innovation: UK common law versus Germany civil law. EuroMed Journal of Business. 17(1), 46–71.

Daellenbach, K. (2018). On carrot cake and marketing education: A perspective on balancing skills for employability. Australasian Marketing Journal (AMJ), 26(2), 172–179.

Daniel, A. D. (2016). Fostering an entrepreneurial mindset by using a design thinking approach in entrepreneurship education. Industry and Higher Education, 30(3), 215–223.

Darus, F., Yusoff, H., Naim, D. M. A., Amran, A., & Fauzi, H. (2018). Corporate social responsibility disclosure of Malaysian Islamic Banks from the Shariah perspective: A focus on the key dimensions. Global Journal Al-Thaqafah, 8(1), 41–55.

D’Aveni, R. A., & MacMillan, I. C. (1990). Crisis and the content of managerial communications: A study of the focus of attention of top managers in surviving and failing firms. Administrative Science Quarterly, 35(4), 634–657.

De Bondt, W. F., & Thaler, R. H. (1995). Financial decision-making in markets and firms: A behavioral perspective. In S.C. Graves & A.G. de Kok (Eds.), Handbooks in operations research and management science.

Deephouse, D. L., Bundy, J., Tost, L. P., & Suchman, M. C. (2017). Organizational legitimacy: Six key questions. The SAGE Handbook of Organizational Institutionalism, 4(2), 27–54.

Diaz, J. F., & Nguyen, T. T. (2021), Application of grey relational analysis and artificial neural networks on corporate social responsibility (CSR) indices. Journal of Sustainable Finance and Investment, 1–19. 021.1929805

Dokko, G., Wilk, S. L., & Rothbard, N. P. (2009). Unpacking prior experience: How career history affects job performance. Organization Science, 20(1), 51–68.

Elamer, A. A., Ntim, C. G., & Abdou, H. A. (2020). Islamic governance, national governance, and bank risk management and disclosure in MENA countries. Business and Society, 59(5), 914–955.

Elsharkawy, M., Paterson, A., & Sherif, M. (2018). Now you see me: Diversity, CEO education, and bank performance in the UK. Investment management and financial innovations, 15, 277–291.

Fabrizi, M., Mallin, C., & Michelon, G. (2014). The role of CEO’s personal incentives in driving corporate social responsibility. Journal of Business Ethics, 124(2), 311–326.

Farh, J. L., Tsui, A. S. K., & Cheng, B. S. (1998). The influence of relational demography and guanxi: The Chinese case. Organization science, 9(4), 471–488.

Farook, S. M., & Lanis, R. (2011). Determinants of corporate social responsibility disclosure: The case of Islamic banks. Journal of Islamic Accounting and Business Research, 2(2), 114–141.

Fee, C. E. C. J., & Pierce, J. R. (2013). Managers with and without style: Evidence using exogenous variation. The Review of Financial Studies, 26(3), 567–601.

Franzoni, S. & Ait Allali, A. (2018). Principles of Islamic finance and principles of corporate social responsibility: What convergence? Sustainability, 10(3), 637.

Ghenimi, A., Chaibi, H., & Omri, M. A. B. (2017). The effects of liquidity risk and credit risk on bank stability: Evidence from the MENA region. Borsa Istanbul Review, 17(4), 238–248.

Godos-Díez, J. L. R., & Martínez-Campillo, A. (2011). How important are CEOs to CSR disclosure? An analysis of the mediating effect of the perceived role of ethics and social responsibility. Journal of Business Ethics, 98(4), 531–548.

Graham, J. R., Harvey, C. R., & Puri, M. (2013). Managerial attitudes and corporate actions. Journal of Financial Economics, 109(1), 103–121.

Grassa, R., Chakroun, R., & Hussainey, K. (2018). Corporate governance and Islamic banks’ products and services disclosure. Accounting Research Journal, 31(1), 75–89.

Gulzar, R., Ibrahim, M. H., & Ariff, M. (2020). Are Islamic banks suffering from a model misfit? Comparison with cooperative banks. Journal of Islamic Monetary Economics and Finance, 6(2).

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.

Haniffa, R., & Hudaib, M. (2007). Exploring the ethical identity of Islamic banks via communication in annual reports. Journal of Business Ethics, 76(1), 97–116.

Harrison, J. S., Thurgood, G. R., Boivie, S., & Pfarrer, M. D. (2020). Perception is reality: How ceos’ observed personality influences market perceptions of firm risk and shareholder returns. Academy of Management Journal, 63(4), 1166–1195.

Harun, M. S., Hussainey, K., Kharuddin, K. A. M., & Al Farooque, O. (2020). CSR disclosure, corporate governance and firm value: A study on GCC Islamic banks. International Journal of Accounting and Information Management, 28(4), 607–638.

Hassan, A., & Syafri Harahap, S. (2010). Exploring corporate social responsibility disclosure: The case of Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 3(3), 203–227.

Hassan, M. K., & Aliyu, S. (2018). A contemporary survey of Islamic banking literature. Journal of Financial Stability, 34, 12–43.

Hirshleifer, D., Low, A., & Teoh, S. H. (2012). Are overconfident CEOs better innovators? The Journal of Finance, 67(4), 1457–1498.

Hu, V. I., & Scholtens, B. (2014). Corporate social responsibility policies of commercial banks in developing countries. Sustainable Development, 22(4), 276–288.

Huang, S. K. (2013). The impact of CEO characteristics on corporate sustainable development. Corporate Social Responsibility and Environmental Management, 20(4), 234–244.

Inoue, Y., Funk, D. C., & McDonald, H. (2017). Predicting behavioral loyalty through corporate social responsibility: The mediating role of involvement and commitment. Journal of Business Research, 75, 46–56.

Islam, M. A. (2017). CSR reporting and legitimacy theory: Some thoughts on future research agenda. The Dynamics of Corporate Social Responsibility. Springer, Cham, 323–339.

Jamali, D., Lund-Thomsen, P., & Jeppesen, S. (2017). SMEs and CSR in developing countries. Business and Society, 56(1), 11–22.

Ji, G., & Lee, J. E. (2015). Managerial overconfidence and going-concern modified audit opinion decisions. Journal of Applied Business Research, 31(6), 2123–2138.

Jusoh, W. N. H. W., & Ibrahim, U. (2020). Corporate social responsibility of Islamic banks: Malaysian practitioners’ outlook. Journal of Islamic Accounting and Business Research, 11(4), 889–904.

Kamla, R. (2007). Critically appreciating social accounting and reporting in the Arab Middle East: A postcolonial perspective. Advances in International Accounting, 20, 105–177.

Kaplan, S. N., Klebanov, M. M., & Sorensen, M. (2012). Which CEO characteristics and abilities matter? The Journal of Finance, 6(3), 973–1007.

Khan, H. Z., Bose, S., & Johns, R. (2020). Regulatory influences on CSR disclosure within banks in an emerging economy: Do banks merely comply? Critical Perspectives on Accounting, 71, 102096.

Kim, B., Lee, S., & Kang, K. H. (2018). The moderating role of CEO narcissism on the relationship between uncertainty avoidance and CSR. Tourism Management, 67, 203–213.

Kim, E. H., & Lyon, T. P. (2015). Greenwash vs. brownwash: Exaggeration and undue modesty in corporate sustainability disclosure. Organization Science, 18(3), 705–723.

Koh, C., Fernando, M., & Spedding, T. (2017). Exercising responsible CEOship in a Singapore context. CEOship and Organization Development Journal, 39(1), 34–50.

Lo, S. F., & Sheu, H. J. (2007). Is corporate sustainability a value increasing strategy for business? Corporate Governance: An International Review, 15(2), 345–358.

Maali, B., Casson, P., & Napier, C. (2006), Social reporting by Islamic banks. Abacus, 42(2), 266–289.

Malik, F., Wang, F., Naseem, M. A., Ikram, A., & Ali, S. (2020). Determinants of corporate social responsibility related to CEO attributes: An empirical study. Sage Open, 10(1), 2158244019899093.

Malmendier, U., & Tate, G. (2015). Behavioral CEOs: The role of managerial overconfidence. Journal of Economic Perspectives, 29(4), 37–60.

Manner, M. H. (2010). The impact of CEO characteristics on corporate social performance. Journal of Business Ethics, 93(1), 53–72.

Matsunaga, S. R., & Yeung, P. E. (2008). Evidence on the impact of a CEO’s financial experience on the quality of the firm’s financial reports and disclosure. AAA 2008 Financial Accounting and Reporting Section (FARS) Paper.

McCarthy, S., Oliver, B., & Song, S. (2017). Corporate social responsibility and CEO confidence. Journal of Banking & Finance, 75, 280–291.

Migdad, A. M. (2017). CSR practices of Palestinian Islamic banks: Contribution to socio- economic development. ISRA International Journal of Islamic Finance, 9(2), 133–147.

Miller, D., & Xu X. (2019). MBA CEOs, short-term management and performance. Journal of Business Ethics, 154(2), 285–300.

Moir, L. (2001). What do we Mean by Corporate Social Responsibility? Corporate Governance, 1(2), 16–22.

Mousa, G., & Hassan, N. T. (2015). Legitimacy theory and environmental disclosure: Short notes. International Journal of Business and Statistical Analysis, 2(1).

Ng, T. W., & Feldman, D. C. (2010). The relationships of age with job attitudes: A meta? analysis. Personnel Psychology, 63(3), 677–718.

Nulla, Y. (2014). The effect of CEO age on CEO compensation using accounting performance as a benchmark: An empirical study on NYSE index companies. Journal of Management Policies and Disclosure, 2(1), 119–133.

Oh, W. Y., Chang, Y. K., & Cheng, Z. (2016). When CEO career horizon problems matter for corporate social responsibility: The moderating roles of industry- level discretion and blockholder ownership. Journal of Business Ethics, 133(2), 279–291.

Olson, D., & Zoubi, T. (2017). Convergence in bank performance for commercial and Islamic banks during and after the Global Financial Crisis. The Quarterly Review of Economics and Finance, 65, 71–87.

Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal, 37(2), 262–279.

Quazi, A. M. (2003). Identifying the determinants of corporate managers’ perceived social obligations. Management Decision, 41(9), 822–831.

Rehman, M. A., Kashif, M., & Mingione, M. (2019). Corporate social responsibility and sustainability (CSRS) Initiatives among European and Asian business schools: A web-based content analysis. Global Business Review, 20(5), 1231–1247.

Ryan, B. R. W., & Theobald, M. (2002). Research method and methodology in finance and accounting. The Accounting Review, 69(2), 421.

Safieddine, A. (2009). Islamic financial institutions and corporate governance: New insights for agency theory. Corporate Governance: An International Review, 17(2), 142–158.

Sauerwald, S., & Su, W. (2019). CEO overconfidence and CSR decoupling. Corporate Governance, 27(4), 283–300.

Schrand, C. M., & Zechman, S. L. (2012). CEO overconfidence and the slippery slope to financial misreporting. Journal of Accounting and Economics, 53(1–2), 311–329.

Schröder, P. (2021). Corporate social responsibility (CSR) website disclosures: Empirical evidence from the German banking industry. International Journal of Bank Marketing, 39(5), 768–788.

Serfling, M. A. (2014). CEO age and the riskiness of corporate policies. Journal of Corporate Finance, 25, 251–273.

Shen, Y. (2021). CEO characteristics: A review of influential publications and a research agenda. Accounting & Finance, 61(1), 361–385.

Sherif, E. H., Khaled, H., Mohamed, M., & Hussien, M. (2018). The determinants of financial, social and Sharia disclosure accountability for Islamic banks. Risk Governance and Control: Financial Markets & Institutions, 8(3), 21–42.

Sun, H., Zhu, J., Wang, T., & Wang, Y. (2021). MBA CEOs and corporate social responsibility: Empirical evidence from China. Journal of Cleaner Production, 290, 125801.

Suutari, V., & Makela, K. (2007). The career capital of managers with global careers. Journal of Managerial Psychology, 22(7), 628–648.

Tang, Y., Qian, C., Chen, G., & Shen, R. (2015). How CEO hubris affects corporate social (ir) responsibility. Strategic Management Journal, 36(9), 1338–1357.

Tang, Y., Mack, D. Z., & Chen, G. (2018). The differential effects of CEO narcissism and hubris on corporate social responsibility. Strategic Management Journal, 39(5), 1370–1387.

Taras, V., Kirkman, B. L., & Steel, P. (2010). Examining the impact of culture’s consequences: A three-decade, multilevel, meta-analytic review of Hofstede’s cultural value dimensions. Journal of Applied Psychology, 95(3), 405.

Vallaster, C., Kraus, S., Lindahl, J. M. M., & Nielsen, A. (2019). Ethics and entrepreneurship: A bibliometric study and literature review. Journal of Business Research, 99, 226–237.

Verbeke, A., & Tung, V. (2013). The future of stakeholder management theory: A temporal perspective. Journal of business ethics, 112(3), 529–543.

Vintila, G., & Gherghina, S. C. (2012). An empirical investigation of the relationship between corporate governance mechanisms, CEO characteristics and listed companies’ performance. International Business Research, 5(10), 175.

Vishwanathan, P., van Oosterhout, H., Heugens, P. P., Duran, P., & Van Essen, M. (2020). Strategic CSR: A concept building meta-analysis. Journal of Management Studies, 57(2), 314–350.

Visser, W. (2011). The nature of CSR leadership. Definitions, characteristics and paradoxes. CSR International Paper Series, 4, 1–10.

Vo, X. V., Pham, T. H. A., Doan, T. N., & Luu, H. N. (2021). Managerial ability and bank lending behavior. Finance Research Letters, 39, 101585.

Waldman, D. A., Siegel, D. S., & Stahl, G. K. (2020). Defining the socially responsible leader: Revisiting issues in responsible leadership. Journal of Leadership & Organizational Studies, 27(1), 5–20.

Yim, S. (2013). The acquisitiveness of youth: CEO age and acquisition behavior. Journal of financial economics, 108(1), 250–273.

Yuan, Y., Tian, G., Lu, L. Y., & Yu, Y. (2019). CEO ability and corporate social responsibility. Journal of Business Ethics, 157(2), 391–411.

Zafar, M. B., & Sulaiman, A. A. (2019). Corporate social responsibility and Islamic banks: A systematic literature review. Management Review Quarterly, 69(2), 159–206.

Zafar, M. B., & Sulaiman, A. A. (2020). Measuring corporate social responsibility in Islamic banking: What matters? International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 357–388.

Zhu, D. H. & Chen, G. (2015). CEO narcissism and the impact of prior board experience on corporate strategy. Administrative Science Quarterly, 60(1), 31–65.