Gulate the reporting possibilities available to managers in presenting the firm’s monetary statements. This type of regulation potentially reduces processing expenses for financial statement customers by supplying a normally accepted language that managers can use to communicate with investors” (Healy and Palepu 2001, p. 412). Though IAS/IFRS requirements are viewed as because the most globally accepted business enterprise language, it was argued that these standards usually are not proper for Islamic banks. Additional in particular, IAS/IFRS standards do not take into account the distinct accounting remedy of IAH funds including disclosure regarding the distribution of income between shareholders and IAHs and smoothing practices of profit payouts to IAHs, like PER and IRR (Maali and Napier 2010; Suandi 2017). Similarly, as noted by Safieddine (2009), it was argued that “the monetary reporting rules set by the International Accounting Standards and also the Typically Accepted Accounting Principles do not reliably reflect the true overall performance of Islamic banks” (p. 144). Therefore, AAOIFI standards were created to improve the transparency of Islamic banks that would permit satisfying shareholders and IAHs’ info desires for decision generating processes (Al Sadah 2007). Additionally, Karim (2001) highlighted the need to have of adopting AAOIFI accounting standards due to the fact these requirements particularly cater towards the exceptional traits of Islamic banks. Indeed, AAOIFI offers Islamic accounting standards (AAOIFI FAS) on tips on how to report investment accounts and tends to make some disclosure requirements to them for instance FAS N 5 “Disclosure of Bases for Profit Allocation amongst Owners’ Equity and Investment Account Holders” and FAS N 6 “Equity of Investment Account Holders and Their Equivalent,” which present a a lot more uniform and transparent manner of accounting practice for IAH funds (Suandi 2017). Al-Baluchi (2006) identified that the degree of voluntary disclosure within the annual reports of Islamic banks elevated soon after the implementation of AAOIFI requirements. El-Halaby (2015) showed that the adoption of AAOIFI standards includes a important positive association with economic disclosure instead of other sorts of disclosure, which reflects the significance of your implementation of those standards in all Islamic banks. In line with Sarea and Hanefah (2013), AAOIFI accounting standards address the exceptional characteristics of merchandise and solutions of Islamic financial institutions. These standards enable them to boost the credibility and reliability of their economic reports. Following Sarea and Hanefah (2013), this study makes use of a stakeholder theory that may well clarify the need to have of particular accounting requirements (i.e., AAOIFI accounting standards) to establish the requirements of IAHs as key stakeholders of Islamic banks. We, thus, set our third hypothesis as Decanoyl-L-carnitine Technical Information follows. Hypothesis three (H3). The adoption of AAOIFI requirements positively affects the degree of IAH disclosures in Islamic banks. 2.four. The AS-0141 Cancer liquidity Level The amount of liquidity can also be an important indicator of banking solvency. Lahrech et al. (2014) located in their study that bank liquidity features a important positive effect on profit distribution to IAHs. The authors noted that larger liquidity will support Islamic banks to manage significantly less profit-sharing ratios and distribute much more profit to IAHs. You’ll find restricted studies that examined the connection among liquidity and corporate disclosure. In accordance with Watson et al. (2002), agency and signaling theories provide mixed benefits.