The relationship between zakat disclosures and Islamic banking performance: Evidence from Yemen

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This paper aims to analyze the link between the disclosure of zakat information and the performance of Islamic financial institutions in Yemen. Panel data of three Islamic banks working in Yemen were used. The study used a 16-item disclosure index to measure zakat disclosure information, and the financial performance of banks was calculated using two proxies, such as return on assets (ROA) and return on equity (ROE). Based on secondary data, this study used correlation matrix, descriptive analysis and regression analysis. ROA results revealed that zakat data and the age of a bank significantly affected financial results calculated by ROA, while the size of Islamic banks had an insignificant influence of banking performance. Zakat information and the size of Islamic banks have a positive effect on bank performance, while the age of the bank negatively influences the performance of banks. The results concerning ROE indicated that zakat data and the age of a bank have a strong and significant influence on the performance of banks, determined by ROA, while the size of a bank has a negative and insignificant effect on the performance of banks, determined by ROE.

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    • Table 1. Definition of research indicators
    • Table 2. Descriptive statistics
    • Table 3. Correlation matrix
    • Table 4. Regression analysis
    • Conceptualization
      Eissa A. Al-Homaidi, Ebrahim Mohammed Al-Matari, Suhaib Anagreh, Nabil Ahmed Mareai Senan
    • Data curation
      Eissa A. Al-Homaidi, Suhaib Anagreh, Mosab I. Tabash
    • Investigation
      Eissa A. Al-Homaidi, Ebrahim Mohammed Al-Matari, Suhaib Anagreh, Nabil Ahmed Mareai Senan
    • Methodology
      Eissa A. Al-Homaidi, Ebrahim Mohammed Al-Matari, Mosab I. Tabash, Nabil Ahmed Mareai Senan
    • Supervision
      Eissa A. Al-Homaidi, Ebrahim Mohammed Al-Matari, Suhaib Anagreh
    • Validation
      Eissa A. Al-Homaidi, Ebrahim Mohammed Al-Matari, Mosab I. Tabash, Nabil Ahmed Mareai Senan
    • Visualization
      Eissa A. Al-Homaidi, Suhaib Anagreh, Nabil Ahmed Mareai Senan
    • Writing – original draft
      Eissa A. Al-Homaidi, Mosab I. Tabash
    • Formal Analysis
      Ebrahim Mohammed Al-Matari, Mosab I. Tabash, Nabil Ahmed Mareai Senan
    • Writing – review & editing
      Ebrahim Mohammed Al-Matari, Suhaib Anagreh, Nabil Ahmed Mareai Senan
    • Project administration
      Suhaib Anagreh
    • Resources
      Suhaib Anagreh, Mosab I. Tabash