This introductory article of the special issue “Shari’a corporate governance disclosure of

Malaysian IFIS” highlights various studies on fast-growing Islamic banking industry. This study
is significant, as corporate governance transparency is one of the ways for Islamic Financial
Institutions (IFIs) to support and endure the confidence of various IFI stakeholders. This study
offers several contributions. First, this study assists regulators, stakeholders and investors, as
well as the general public, especially the Muslim community, to assess whether information
disclosed in the annual reports of IFIs is sufficient and meets the expected Shari’a requirements
and benchmarks. It may help regulators and policymakers identify the aspects that the IFIs may
lack in disclosing important information, and thus, take remedial action on that particular area.
Second, this study explains the results of the IFI corporate governance disclosure index. It can
help the IFIs’ board and management to understand and make more efforts to align its products
and operations with Shari’a principles. It also will help stakeholders and consumers in assessing
the products, services, transactions and management of IFIs. These stakeholders will be able to
assess the commitment of IFIs to align their operations with Shari’a principles. This serves as a
guide for them in choosing products and services accurately between the IFIs and sets
expectations of the IFIs’ future performance. Finally, this study will contribute to the theory and
body of the literature on the current IFIs’ Shari’a corporate governance disclosure levels,
particularly those in Malaysia, as information is still scarce and limited, especially for studies
that focus on the size and ownership of different Islamic banks.