There is a significant difference regarding the scope of MAS between IFIs and
conventional financial institutions.
Timeliness of information refers to the provision of information on request and the
frequency of reporting collected information. Timeliness influences the managers’
ability in responding quickly to events. MAS, together with timely information, is able to
report upon the most recent events and provide rapid feedback on decisions (Chenhall
and Morris, 1986; Bouwens and Abernethy, 2000). In Islamic banks, the profit rate for
their financing are fixed. However, the return on the deposits fluctuates depending on
market conditions. Therefore, to prevent mismatch between assets and liabilities, timely
information is required by IFIs in calculating their profit distribution. At the same time,
IFIs take a partnership position in their equity-based financing, and timely information
is required so that decision making, planning and control can be made effectively since
the IFIs themselves become a stakeholder in the businesses to which they provide
financing (Greuning and Iqbal, 2007). By being partners with their customers, it is
critical for IFIs to have reliable and timely information (Greuning and Iqbal, 2007). Based
on the arguments above, the following proposition is proposed: