Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries

References

• Abdeldayem, M., & Darwish, S. (2018). Does risk perception influence the accuracy of decisions in the Arab culture. International Journal of Economic Research, 15(2), 529–25.
   Google Scholar
• Abedifar, P., Molyneux, P., & Tarazi, A. (2013). Risk in Islamic banking. Review of Finance, 17(6), 2035–2096. https://doi.org/10.1093/rof/rfs041
   Web of Science ®Google Scholar
• Abusharbeh, M. T. (2014). Credit risks and profitability of Islamic banks: Evidence from Indonesia. World Review of Business Research, 4(3), 136–147.
   Google Scholar
• Acaravci, S. K, & Çalim, A. E. (2013). Turkish banking sector’s profitability factors. International Journal Of Economics and Financial Issues, 3(1), 27-41.
   Google Scholar
• Al Zyoud, A. S. A., Almsafir, M. K., & Abdalmajeed Al-smadi, A. (2013). Islamic finance modes in jordanian economy: A comparative study. Australian Journal of Basic and Applied Sciences, 7(10), 347–353.
   Google Scholar
• Ali, A., Zulkhibri, M., & Kishwar, T. (2019). Credit risk, bank performance and Islamic banking: Evidence from Pakistan. In Islamic finance, risk-sharing and macroeconomic stability (pp. 171–189). Springer.
   Google Scholar
• Altunbas, Y., Liu, M.-H., Molyneux, P., & Seth, R. (2000). Efficiency and risk in Japanese banking. Journal of Banking & Finance, 24(10), 1605–1628. https://doi.org/10.1016/S0378-4266(99)00095-3
   Web of Science ®Google Scholar
• Alzoubi, T. (2018). Determinants of bank profitability: Islamic versus conventional banks. Banks and Bank Systems, 13(3), 106–113. https://doi.org/10.21511/bbs.13(3).2018.10
   Google Scholar
• Anderson, R., & Sundaresan, S. (2000). A comparative study of structural models of corporate bond yields: An exploratory investigation. Journal of Banking & Finance, 24(1–2), 255–269. https://doi.org/10.1016/S0378-4266(99)00059-X
   Web of Science ®Google Scholar
• Ariffin, N. M., Archer, S., & Karim, R. A. A. (2009). Risks in Islamic banks: Evidence from empirical research. Journal of Banking Regulation, 10(2), 153–163. https://doi.org/10.1057/jbr.2008.27
   Google Scholar
• Asutay, M., & Izhar, H. (2007). Estimating the profitability of Islamic banking: Evidence from bank Muamalat Indonesia. Review of Islamic Economics, 11(2), 17–29.
   Google Scholar
• Bahrini, R. (2017). Efficiency analysis of Islamic banks in the Middle East and North Africa region: A bootstrap DEA approach. International Journal of Financial Studies, 5(1), 7. https://doi.org/10.3390/ijfs5010007
   Web of Science ®Google Scholar
• Bakhita, H. (2017). Impact of Islamic modes of finance on economic growth through financial stability. Journal of Business and Financial Affairs, 6(249), 2167–0234.1000249.
   Google Scholar
• Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking and Finance, 37(2), 433–447. https://doi.org/10.1016/j.jbankfin.2012.09.016
   Web of Science ®Google Scholar
• Belkhaoui, S., Lakhal, L., Lakhal, F., & Hellara, S. (2014). Market structure, strategic choices and bank performance: A path model. Managerial Finance, 40(6), 538–564. https://doi.org/10.1108/MF-07-2013-0183
   Web of Science ®Google Scholar
• Berger, A. N. (1995). The relationship between capital and earnings in banking. Journal of Money, Credit and Banking, 27(2), 432–456. https://doi.org/10.2307/2077877
   Web of Science ®Google Scholar
• Berger, A. N., & Di Patti, E. B. (2006). Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry. Journal of Banking & Finance, 30(4), 1065–1102. https://doi.org/10.1016/j.jbankfin.2005.05.015
   Web of Science ®Google Scholar
• Boyd, J. H., & De Nicolo, G. (2005). The theory of bank risk taking and competition revisited. The Journal of Finance, 60(3), 1329–1343. https://doi.org/10.1111/j.1540-6261.2005.00763.x
   Web of Science ®Google Scholar
• Brewer Iii, E., Kaufman, G. G., & Wall, L. D. (2008). Bank capital ratios across countries: Why do they vary? Journal of Financial Services Research, 34(2–3), 177–201. https://doi.org/10.1007/s10693-008-0040-9
   Web of Science ®Google Scholar
• Bucevska, V., & Hadzi Misheva, B. (2017). The determinants of profitability in the banking industry: Empirical research on selected Balkan countries. Eastern European Economics, 55(2), 146–167. https://doi.org/10.1080/00128775.2016.1260473
   Web of Science ®Google Scholar
• Bukhari, S. A. J., & Qudous, R. A. (2012). Internal and external determinants of profitability of banks: Evidence from Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 3(9), 1037–1058.
   Google Scholar
• Diamond, D. W., & Rajan, R. G. (2001). Liquidity risk, liquidity creation, and financial fragility: A theory of banking. Journal of Political Economy, 109(2), 287–327. https://doi.org/10.1086/319552
   Web of Science ®Google Scholar
• El-Hawary, D., Grais, W., & Iqbal, Z. (2004). Regulating Islamic financial institutions: The nature of the regulated. The World Bank.
   Google Scholar
• Farooq, M., & Ahmed, M. M. M. (2013). Musharakah financing: Experience of Pakistani banks. World Applied Sciences Journal, 21(2), 181–189.
   Google Scholar
• Farooq, M., & Ahmed, M. M. M. (2017). Musharakah financing: Experience of Pakistani Banks. World Applied Sciences Journal, 21(2), 181–189.
   Google Scholar
• Gheeraert, L. (2014). Does Islamic finance spur banking sector development? Journal of Economic Behavior & Organization, 103, S4–S20. https://doi.org/10.1016/j.jebo.2014.02.013
   Web of Science ®Google Scholar
• Goddard, J., Liu, H., Molyneux, P., & Wilson, J. O. (2011). The persistence of bank profit. Journal of Banking & Finance, 35(11), 2881–2890. https://doi.org/10.1016/j.jbankfin.2011.03.015
   Web of Science ®Google Scholar
• Gujarati, D. N. (2003). Basic econometrics. McGraw Hill.
   Google Scholar
• Hafnida, H., Maamor, S., & Abdullah, H. (2015). An empirical study of the relationship between Islamic modes of finance and financial intermediation. International Journal of Business and Management, 10(7), 93–98. https://doi.org/10.5539/ijbm.v10n7p93
   Google Scholar
• Haron, S., Shanmugam, B., & Doran, H. (1997). Determinants of Islamic bank profitability.
   Google Scholar
• Hassan, M. K., & Aliyu, S. (2018). A contemporary survey of Islamic banking literature. Journal of Financial Stability, 34, 12–43. https://doi.org/10.1016/j.jfs.2017.11.006
   Web of Science ®Google Scholar
• Hassan, M. K., & Lewis, M. K. (2007). Islamic finance: A system at the crossroads? Thunderbird International Business Review, Special Issue on Islamic Finance, 49(2), 151–160. (forthcoming). https://doi.org/10.1002/tie.20137
   Google Scholar
• HGB, B. (2017). Impact of islamic modes of finance on economic growth through financial stability. Journal Of Business & Financial Affairs, 6(1), 1-7.
   Google Scholar
• Hidayat, S. E., & Abduh, M. (2012). Does financial crisis give impacts on Bahrain Islamic banking performance? A panel regression analysis. International Journal of Economics and Finance, 4(7), 79–87. https://doi.org/10.5539/ijef.v4n7p79
   Google Scholar
• Husain, A., Affandi, S., & Shukur, N. A. (2015). The internal determinants of Islamic banks’ profitability in Malaysia. Journal of Basic and Applied Scientific Research, 5(7), 17–21.
   Google Scholar
• Jöreskog, K. G., & Goldberger, A. S. (1975). Estimation of a model with multiple indicators and multiple causes of a single latent variable. Journal of the American Statistical Association, 70(351a), 631–639.
   Google Scholar
• Kendall, M. G., & O'Muircheartaigh, C. A. (1977). Path analysis and model building: World Fertility Survey, International Statistical Institute.
   Google Scholar
• Khairi, K. F., Laili, N. H., Sabri, H., & Yusuf, M. M. (2018). Risks in Islamic Banks: Challenges and management. Journal of Engineering and Applied Sciences, 13(8), 2081–2085.
   Google Scholar
• Khan, M. M., Bhatti, M. I., Rosly, S. A., & Zaini, M. A. M. (2008). Risk‐return analysis of Islamic banks’ investment deposits and shareholders’ fund. Managerial Finance.
   Google Scholar
• Khan, M. M. S., Ijaz, F., & Aslam, E. (2014). Determinants of profitability of Islamic banking industry: An evidence from Pakistan. Business & Economic Review, 6(2), 27–46. https://doi.org/10.22547/BER/6.2.2
   Google Scholar
• Kuppusamy, M. (2010). Measurement of Islamic banks performance using a shariah conformity measurement of Islamic Banks performance using a shariah conformity and profitablity model. Jurnal Review of Islamic Economics, 13, 35–48.
   Google Scholar
• Kuppusamy, M., Saleh, A. S., & Samudhram, A. (2010). Measurement of Islamic banks performance using a shariah conformity and profitablity model. Review of Islamic Economics, 13(2), 35–48.
   Google Scholar
• Menicucci, E., & Paolucci, G. (2016). The determinants of bank profitability: Empirical evidence from European banking sector. Journal of Financial Reporting and Accounting, 14(1), 86–115. https://doi.org/10.1108/JFRA-05-2015-0060
   Web of Science ®Google Scholar
• Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297.
   Web of Science ®Google Scholar
• Mohamad, A. A. S., Mohamad, M. T., & Samsudin, M. L. (2013). How Islamic banks of Malaysia managing liquidity? An emphasis on confronting economic cycles. International Journal of Business and Social Science, 4(7).
   PubMedGoogle Scholar
• Molyneux, P., & Thornton, J. (1992). Determinants of European bank profitability: A note. Journal of Banking & Finance, 16(6), 1173–1178. https://doi.org/10.1016/0378-4266(92)90065-8
   Web of Science ®Google Scholar
• Muda, M., Shaharuddin, A., & Embaya, A. (2013). Comparative analysis of profitability determinants of domestic and foreign Islamic banks in Malaysia. International Journal of Economics and Financial Issues, 3(3), 559–569.
   Google Scholar
• Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have informationthat investors do not have (0898-2937).
   Google Scholar
• Neter, J., Wasserman, W., & Kutner, M. H. (1990). Applied linear statistical models: Regression, analysis of variance, and experimental designs. Richard D. Irwin. In: Inc.
   Google Scholar
• Nienhaus, V. (1983). Profitability of Islamic PLS banks competing with interest banks: Problems and prospects. Journal of King Abdulaziz University: Islamic Economics, 1(1).
   Google Scholar
• Ogboi, C., & Unuafe, O. K. (2013). Impact of credit risk management and capital adequacy on the financial performance of commercial banks in Nigeria. Journal of Emerging Issues in Economics, Finance and Banking, 2(3), 703–717.
   Google Scholar
• Othman, N., Maji, M. A., & Rahman, A. A. (2015). Equity-based financing and Islamic banks efficiency: Stochastic frontier analysis [Paper presentation]. The 2nd International Conference on Management and Muamalah, Bangi: Faculty of Management and Muamalah, International Islamic University College Selangor.
   Google Scholar
• Parashar, S. P. (2010). How did Islamic banks do during global financial crisis? Banks and Bank Systems, 5(4), 54–62.
   Google Scholar
• Pesendorfer, J., & Lehner, O. M. (2016). Islamic banking and finance as an ethical alternative: A systematic literature review. ACRN Oxford Journal of Finance and Risk Perspectives, 5(2016), 42–64.
   Google Scholar
• Peter. (1999). Islamic banking and finance. Clyde and Co.
   Google Scholar
• Ramadan, I. Z., Kilani, Q. A., & Kaddumi, T. A. (2011). Determinants of bank profitability: Evidence from Jordan. International Journal of Academic Research, 3(4).
   Google Scholar
• Ramlan, H., & Adnan, M. S. (2016). The profitability of Islamic and conventional bank: Case study in Malaysia. Procedia Economics and Finance, 35, 359–367. https://doi.org/10.1016/S2212-5671(16)00044-7
   Google Scholar
• Reddy, K. S. (2011). Management behaviour in Indian commercial banks. International Review of Accounting, Banking & Finance, 3(3).
   Google Scholar
• Saeed, S., Ali, F., & Baber Adeeb, M. H. (2013). Examining efficiency of Islamic and conventional banks in Pakistan: Using data envelopment analysis. Global Journal of Management and Business Research.
   Google Scholar
• Samad, A. (2015). Determinants bank profitability: Empirical evidence from Bangladesh commercial banks. International Journal of Financial Research, 6(3), 173–179. https://doi.org/10.5430/ijfr.v6n3p173
   Google Scholar
• Samad, A., & Hassan, M. K. (2006). The performance of Malaysian Islamic bank during 1984–1997: An exploratory study. International Journal of Islamic Financial Services, 1(3).
   Google Scholar
• Seelanatha, L. (2010). Market structure, efficiency and performance of banking industry in Sri Lanka. Banks & Bank Systems, 5(1), 20–31.
   Google Scholar
• Shajari, P., & Shajari, H. (2010). Non-performing loans and financial soundness indicators: In Iran’s banking system. Money and Banking Research Center, 1–19.
   Google Scholar
• Shrieves, R. E., & Dahl, D. (1992). The relationship between risk and capital in commercial banks. Journal of Banking & Finance, 16(2), 439–457. https://doi.org/10.1016/0378-4266(92)90024-T
   Web of Science ®Google Scholar
• Skully, M. J., Ahmad, R., & Ariff, M. (2009). The determinants of bank capital ratios in a developing economy.
   Google Scholar
• Sutrisno, S. (2016). The effect of funding and risk on financing decision empirical study of Islamic banks in Indonesia. INFERENSI: Jurnal Penelitian Sosial Keagamaan, 10(1), 115–134. https://doi.org/10.18326/infsl3.v10i1.115-134
   Google Scholar
• Tan, Y., Floros, C., & Anchor, J. (2017). The profitability of Chinese banks: Impacts of risk, competition and efficiency. Review of Accounting and Finance, 16(1), 86–105. https://doi.org/10.1108/RAF-05-2015-0072
   Web of Science ®Google Scholar
• Verbrugge, J. A., & Jahera, J. S. (1981). Expense-preference behavior in the savings and loan industry. Journal of Money, Credit and Banking, 13(4), 465–476. https://doi.org/10.2307/1991936
   Web of Science ®Google Scholar
• Williams, J. (2004). Determining management behaviour in European banking. Journal of Banking & Finance, 28(10), 2427–2460. https://doi.org/10.1016/j.jbankfin.2003.09.010
   Web of Science ®Google Scholar
• Yanikkaya, H., Gumus, N., & Pabuccu, Y. U. (2018). How profitability differs between conventional and Islamic banks: A dynamic panel data approach. Pacific-Basin Finance Journal, 48, 99–111. https://doi.org/10.1016/j.pacfin.2018.01.006
   Web of Science ®Google Scholar
• Yao, H., Haris, M., & Tariq, G. (2018). Profitability determinants of financial institutions: Evidence from banks in Pakistan. International Journal of Financial Studies, 6(2), 53. https://doi.org/10.3390/ijfs6020053
   Web of Science ®Google Scholar
• Zeitun, R. (2012). Determinants of Islamic and conventional banks performance in GCC countries using panel data analysis. Global Economy and Finance Journal, 5(1), 53–72.
   Google Scholar
• Zellner, A, & Huang, D. S. (1962). Further properties of efficient estimators for seemingly unrelated regression equations. International Economic Review, 3(3), 300-313.
   Web of Science ®Google Scholar