Corporate governance and shariah governance disclosure in Malaysian takaful operators: Evidence from 2021–2025

Abstract

This study examines the extent of corporate governance (CG) and Shariah governance (SG) disclosures among Malaysian Takaful operators. Using data from licensed Malaysian Takaful operators covering the period 2021–2025, a disclosure index was developed based on regulatory requirements and prior literature. The final sample consisted of 11 licensed Takaful operators observed over five years (2021–2025), yielding 55 firm-year observations.Content analysis was employed to measure the extent of corporate governance and Shariah governance disclosures, while panel regression analysis was conducted to identify the factors influencing disclosure practices. The findings reveal that corporate governance disclosures are generally extensive and relatively consistent across Takaful operators, reflecting the influence of established regulatory requirements. In contrast, Shariah governance disclosures exhibit greater variation among firms, indicating differences in reporting practices and disclosure quality. The results further show that firm size, board independence, and Shariah committee size have a significant positive influence on disclosure levels. Profitability demonstrates a weaker positive association with disclosure, while leverage is negatively related to disclosure practices. This study contributes to the growing body of literature on Islamic financial governance by integrating both corporate governance and Shariah governance dimensions within a single disclosure framework. The findings provide valuable insights for regulators, policymakers, and industry practitioners seeking to enhance transparency, accountability, and governance standards within the Malaysian Takaful industry.