Corporate social responsibility disclosure and dividend policy of Islamic banks: evidence from GCC countries

Purpose The purpose of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and dividend policy of Islamic banks. Design/methodology/approach Annual reports from 29 Islamic banks in the GCC region are analyzed over the period 2010–2019. A CSR index was constructed to measure the extent of CSR disclosure. Findings The findings of this study indicate that CSR disclosure negatively impacts the dividend payout ratio (DPR) but boosts the likelihood of paying dividends. The mission and vision (MV) CSR sub-dimension reduces payouts, while zakah, charity and community commitment (ZCB and CTC) enhance dividend propensity. Results are robust across measures. Originality/value This research provides new insights into the interplay between CSR practices and dividend policies in Islamic banks, highlighting specific CSR dimensions that influence financial decisions.