Does country governance foster revenue efficiency of Islamic and conventional banks in GCC countries?

Kamarudin, Fakarudin; Sufian, Fadzlan; Nassir, Annuar

doi:10.1108/emjb-06-2015-0026

Cited by 57 publications

(83 citation statements)

References 80 publications

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“…In assessing efficiency level, Data Envelopment Analysis (DEA) is relatively used more frequently to measure the level of technical efficiency and economies of scale of the banking industry and other financial institutions. Such an analysis is consistent with the research conducted by Rani et al (2017), Kamarudin et al (2016); Ozdemir (2013); Shahreki (2012); and Tsolas and Dimitris (2012), as well as Rusydiana (2018aRusydiana ( , 2018b, Rusydiana & Sanrego (2018), and Rusydiana & Firmansyah (2017).…”

Section: Introduction 11 Backgroundsupporting

confidence: 90%

Financial and Social Efficiency on Indonesian Islamic Banks

Rusydiana¹,

Marlina²

2019

JIMF

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This paper explores financial and social efficiency in one assessment framework. Inorder to measure efficiency level of Islamic Banking Industry, this study uses DataEnvelopment Analysis (DEA) and Free Disposal Hull (FDH) methods. The resultsshow that the level of financial efficiency of Islamic banks in Indonesia from 2013 to2018 tends to decrease. On the contrary, the level of social efficiency of Islamic banksin Indonesia has a tendency to increase. Furthermore, the value of social efficiency ofIslamic banks in Indonesia was relatively lower compared to the value of financialefficiency. Within the Financial-Social Efficiency Quadrant framework, the studyclassified two Islamic banks in quadrant 1, three in quadrant 2, two in quadrant 3,and four in quadrant 4. It is imperative for Islamic banks that are in the low level of‘social efficiency’ to develop a policy to keep in line with the five factors of maqashidsharia apart of maintaining efficiency in order to reach maslahah. For the regulators,the social efficiency measurement framework could be an alternative in consideringIslamic bank performance beyond financial efficiency.

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Section: Introduction 11 Backgroundsupporting

confidence: 90%

Financial and Social Efficiency on Indonesian Islamic Banks

Rusydiana¹,

Marlina²

2019

JIMF

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“…Several studies have reported a link between rule of law and entrepreneurship (e.g. Shagbazian & Aistov, 2017;Ngunjiri, 2010;Haggard & Haggard, 2018;Agyemang et al, 2015;Kamarudin et al, 2016;Saona, 2016;Tong et al, 2018;Goltz et al, 2015). The literature review establishes a piece of evidence on the negative effect of regulations (Djankov et al, 2002;Klapper et al, 2006).…”

Section: Rule Of Law and Entrepreneurshipmentioning

confidence: 97%

“…Further, different studies (e.g. Beck, Demirguc-Kunt, Levine, 2006;Kamarudin et al, 2016;Avram et al, 2015;Beck, Demirguc-Kunt & Levine, 2006) agree that transparent and accountable policy is an important determinant for a better business environment and sound economic activity. Guerber and Anand (2019) indicate that corporate governance codes and regulations (e.g.…”

Section: Theoretical Literaturementioning

confidence: 99%

Impact of country-level corporate governance on entrepreneurial conditions

Maqtari

Farhan

Al-Hattami

et al. 2020

Cogent Business & Management

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The present study examines the effect of country-level corporate governance (CLCG) and Directors' Liability (DL) on Entrepreneurial Framework Conditions (EFCs) across 52 countries from 2014 up to 2017 using balanced panel data and Panel Correction Standard Error estimation. The results revealed that the CLCG has a significant impact across EFCs dimensions. Further, the results declared that the impact of DL is significant and positive in countries that have a high score of DL, but this impact is statistically negative in countries that have a low score of DL. The findings have momentous implications for entrepreneurs, policymakers, regulators, international organizations, and academicians. The study makes novel contributions to the strand literature underpinning countrylevel governance and the role of directors' liability with EFCs. It brings a useful insight into a previously undocumented area of research highlighting the importance of CLCG dimensions and DL as important factors and determinants for better entrepreneurial conditions.

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“…In essence, revenue efficiency would be the major factor that influences profit efficiency. Berger and Humphrey (1997), Bader et al (2008) and Kamarudin et al (2016) state that there have been limited studies done on revenue efficiency of banks. Furthermore, if these studies are narrowed down to the Islamic banking industry, there is paucity of studies that looked into the difference in the revenue efficiency of the domestic and foreign Islamic banks.…”

Section: Review Of the Literaturementioning

confidence: 99%

Bank Efficiency in Malaysia a DEA Approach

Kamarudin

Sufian

Nassir

et al. 2019

Journal of Central Banking Theory and Practice

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The purpose of the present paper is to examine the revenue efficiency of the Malaysian Islamic banking sector. The study also seeks to investigate the potential internal (bank specific) and external (macroeconomic) determinants that influence the revenue efficiency of Malaysian domestic Islamic banks. We employ the whole gamut of domestic and foreign Islamic banks operating in the Malaysian Islamic banking sector during the period of 2006 – 2015. The level of revenue efficiency is computed by using the Data Envelopment Analysis (DEA) method. Furthermore, we employ a panel regression analysis framework based on the Ordinary Least Square (OLS) method to examine the potential determinants of revenue efficiency. The results indicate that the level of revenue efficiency of Malaysian domestic Islamic banks is lower compared to their foreign Islamic bank counterparts. We find that bank market power, liquidity, and management quality significantly influence the improvement in revenue efficiency of the Malaysian domestic Islamic banks during the period under study. This study provides for the first time empirical evidence that covering all three efficiency concepts, namely cost, revenue, and profit efficiency is completely missing from the literature. By calculating these efficiency concepts, we can observe the efficiency levels of the domestic and foreign Islamic banks. In addition, by comparing both cost and profit efficiency, we can identify the influence of the revenue efficiency on the banks’ profitability.

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Does country governance foster revenue efficiency of Islamic and conventional banks in GCC countries?

Cited by 57 publications

References 80 publications

Financial and Social Efficiency on Indonesian Islamic Banks

Financial and Social Efficiency on Indonesian Islamic Banks

Impact of country-level corporate governance on entrepreneurial conditions

Bank Efficiency in Malaysia a DEA Approach

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