The Determinants Of World Islamic Banks Efficiency: Empirical Analysis Using A Non Parametric Approach

Nafti, Olfa; Boumediene, Salem Lotfi; Khouaja, Slim; Ayed, Wassim Ben

doi:10.19030/jabr.v33i2.9910

Cited by 5 publications

(3 citation statements)

References 22 publications

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“…Similarly, Abduh, and Idrees (2013) has found a negative relationship between bank size and performance. On the contrary, Nafti et al (2017), and Ruslan, Pahlevi, Alam, & Nohong (2019) have found that bank size has a positive and significant influence on bank profitability through bank efficiency (mediating effect). Fang, C. K. Lu, Tan, & Zhang (2019) has conducted a study in Chania and found that there is a relationship between the bank's sizes and the bank's performance.…”

Section: Review Of Literaturementioning

confidence: 98%

Impact of Mergers and Acquisitions on Operational Performance of Islamic Banking Sector

2021

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Merger and acquisition (hereafter MA) are the business expansion strategy. Islamic bank is the niche banking sector compared to its peers while it is categorized as too small to succeed. The paper aims to analyze the impact of MA on the operational performance of the Islamic banking sector. This study employs empirical research methods, namely cross-sectional pooled regression and panel data regression to analyze a set of samples consisting of 10 Islamic banks involved in MA from 6 countries, drawn from the International Monetary Fund (IMF), World bank, Ficth Connect, and Bloomberg over the years of 2009Q1to 2018Q4. The operational performance is estimated using accounting-based measures while the Herfindahl-Hirschman Index (HHI) and the concentration ratio (CR) are applied to signify market structure. Total assets, total deposits, and operating income variables are used to represent bank size. The findings indicate that bank size shows a negative impact on operational performance. While the segregated level of bank size which is larger banks and concentrated market structure has a greater impact on the operational performance of Islamic banks in the post-MA period. The paper concludes by discussing policy implications for policymakers and academicians for having the strategic decision on the MA deal and further research.

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Section: Review Of Literaturementioning

confidence: 98%

Impact of Mergers and Acquisitions on Operational Performance of Islamic Banking Sector

2021

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“…Nurwulan (2013), Barry, dkk. (2010) dan Nafti, et..al. (2017), Noor & Ahmad (2009) menemukan bahwa bank dengan skala usaha dan modal yang besar berhubungan positif terhadap efisiensi.…”

Section: Pembahasanunclassified

Efisiensi Bank dalam Kelompok BUKU 4 di Indonesia: Pendekatan Data Envelopment Analysis

Sari

Widaninggar

2018

AFRE

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This research aims to provide empirical evidence about efficiency level of banks in Indonesia using Data Envelopment Analysis (DEA). DEA is non-parametric analysis which use by this research. This research was conducted using all population of Indonesia banking in BUKU 4 category period 2012 until 2017. Data analysis was conducted for four banking in BUKU 4 category which have core capital more than 30 trillion Rupiah, by using census method. The results provide empirical evidence that Indonesia banking have a 100%. This research shows that the level of efficiency is able to drive high business results and increase competitiveness for banks in the BUKU 4 category.

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“…Some studies, including Micco et al (2007) and Abduh and Idrees (2013), find no relationship between bank size and performance. On the contrary, Nafti et al (2017); Faliza (2023) and Ruslan et al (2019) found that bank size has a positive influence on bank profitability through bank efficiency. Fang et al…”

Section: Theoretical Referentialmentioning

confidence: 96%

The Impact of Bank Size on Pre- and Post- Merger and Acquisition Performance and Stability: New Evidence from GCC and Pakistan

Ullah,

Nor,

Seman

et al. 2023

J. Professional Business Review

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Purpose: This study contributes to the existing literature by providing a comprehensive overview of the complex relationship between level of bank sizes, factors, M&A performance, and stability for banking sectors, Islamic vs conventional banks, and by highlighting the importance of considering the specific characteristics of the banking industry in GCC and Pakistan. Theoretical framework: The conceptual framework is developed and designed based on the theory and in line with the literature review. The theories are resource dependency theory and efficiency theory Design/Methodology/Approach: This paper employs an unbalanced panel data of 24 banks consisting of 10 Islamic banks and 14 conventional banks from GCC and Pakistan, 2004Q1 to 2020Q4. Data is collected from several secondary sources, namely Bloomberg, FitchConnect database, Bank’s financial statement, IMF, and World Bank database. Findings: Our results revealed that bank size has a significant impact on the M&A performance and stability of banks. However, there is no significant difference between pre- and post- M&A performance. Interestingly, smaller banks outperformed larger and medium-sized banks in terms of M&A performance, while larger and medium-sized banks exhibited better bank stability than smaller banks. Interestingly, while looking at Islamic vs conventional banks point of view results show that operational performance of Islamic is better than conventional banks. On the other hand, stability of conventional bank is better than Islamic banks. Research, Practical, & Social implications: The limitations of this research should also be acknowledged and future research should expand the number of observations and including more Islamic banks is essential. Moreover, exploring the impact of cultural and regulatory differences on M&A activities is also an interesting avenue for further research. Additionally, future research should investigate the impact of M&A activities on other performance measures, such as efficiency, productivity, and profitability. Originality/Value: This study aims to fill the theoretical and empirical research gap by examining the impact of level of bank size on pre- and post - M&A activities in the GCC and Pakistan for banking sectors, Islamic banks vs conventional banks

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The Determinants Of World Islamic Banks Efficiency: Empirical Analysis Using A Non Parametric Approach

Cited by 5 publications

References 22 publications

Impact of Mergers and Acquisitions on Operational Performance of Islamic Banking Sector

Impact of Mergers and Acquisitions on Operational Performance of Islamic Banking Sector

Efisiensi Bank dalam Kelompok BUKU 4 di Indonesia: Pendekatan Data Envelopment Analysis

The Impact of Bank Size on Pre- and Post- Merger and Acquisition Performance and Stability: New Evidence from GCC and Pakistan

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