Investigates leadership religiosity effects on transparency in Islamic banks, implying governance insights.
Purpose This study investigates how the religiosity attributes of chief executive officers (CEOs) and chairman, reflected through Islamic attire and educational background, affect Islamic Social Reporting (ISR) disclosure in Islamic banks. ISR represents a social and environmental reporting framework guided by Shariah principles of accountability, fairness, and transparency. Design/methodology/approach Using panel data from 15 Islamic banks in Indonesia and Malaysia from 2014 to 2023, this study applies regression models to analyze the relationship between leadership religiosity attributes and ISR disclosure, incorporating institutional and macroeconomic control variables. Findings The results show that CEO religiosity, as expressed through attire, is negatively associated with ISR disclosure, suggesting symbolic rather than substantive commitment. In contrast, the chairman’s attire has a positive effect, reflecting the chairman's supervisory role. For education, findings are mixed: CEO Islamic Education shows a positive association in robustness tests. At the same time, the chairman of Islamic education remains insignificant, indicating that education matters more in operational than supervisory roles. Practical implications The findings highlight that regulators, policymakers, and boards must recognize the distinction between symbolic and substantive religiosity in leadership. Strengthening governance mechanisms emphasizing substantive religious knowledge and accountability, rather than symbolic displays, may enhance ISR practices and overall transparency in Islamic banks. Originality/value This is the first study to empirically examine both visible religiosity (Islamic attire) and formal religiosity (Islamic education) among CEOs and chairmen as proxies for leadership religiosity regarding ISR disclosure. By distinguishing between operational (CEO) and supervisory (chairman) roles, the study provides fresh insights into how executive religiosity interacts with governance to shape disclosure practices in the Islamic banking context.
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Rosadi et al. (2026) studied this question.
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