IDEAS home Printed from https://ideas.repec.org/a/eme/qrfmpp/v4y2012i2-3p255-268.html
   My bibliography  Save this article

Bank‐specific and macroeconomic profitability determinants of Islamic banks

Author

Listed:
  • Omar Masood
  • Muhammad Ashraf

Abstract

Purpose - The purpose of this paper is to inspect whether bank‐specific and macro‐economic determinants influence Islamic banks' profitability in the selected countries of different regions. Design/methodology/approach - In order to achieve the study objective and to answer the question, the balanced panel data regression model has been used. Bank level data is used and this study examines the alternative measures ROA and ROE as a bank‐specific function and macro‐economic determinants. Findings - The study results signify that banks with larger assets size and with efficient management lead to greater return on assets. Originality/value - The paper shows that management efficiency regarding operating expenses positively and significantly affects the banks' profitability.

Suggested Citation

  • Omar Masood & Muhammad Ashraf, 2012. "Bank‐specific and macroeconomic profitability determinants of Islamic banks," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 4(2/3), pages 255-268, August.
    • Handle: RePEc:eme:qrfmpp:v:4:y:2012:i:2/3:p:255-268
    DOI: 10.1108/17554171211252565
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/17554171211252565/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/17554171211252565/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/17554171211252565?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Ali, Khalid M. Iraqi, Abdul Waheed Khan, 2019. "Impact of Oil Prices on Stock Market Performance: Evidence from Top Oil Importing Countries," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 4(2), pages 1-14, October.
    2. Caturida Meiwanto Doktoralina & Fikki Mutarotun Nisha, 2020. "Mudharabah Deposits Among Conventional Bank Interest Rates, Profit-Sharing Rates, Liquidity and Inflation Rates," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 25-33, January.
    3. Asima Siddique & Omar Masood & Kiran Javaria & Dinh Tran Ngoc Huy, 2020. "A comparative study of performance of commercial banks in ASIAN developing and developed countries," Post-Print hal-02919632, HAL.
    4. Santosh Kumar Das & Khushboo Uppal, 2021. "NPAs and profitability in Indian banks: an empirical analysis," Future Business Journal, Springer, vol. 7(1), pages 1-9, December.
    5. Sayyed Sadaqat Hussain Shah & Ștefan Cristian Gherghina & Rui Miguel Dantas & Saliha Rafaqat & Anabela Batista Correia & Mário Nuno Mata, 2023. "The Impact of COVID-19 Pandemic on Islamic and Conventional Banks’ Profitability," Economies, MDPI, vol. 11(4), pages 1-17, March.
    6. Okotori, Tonprebofa & Ayunku, Peter, 2020. "Banking Reforms and Deposit Money Banks Profitability in Nigeria," MPRA Paper 102389, University Library of Munich, Germany.
    7. Dolly Gaur & Dipti Ranjan Mohapatra, 2021. "Non-performing Assets and Profitability: Case of Indian Banking Sector," Vision, , vol. 25(2), pages 180-191, June.
    8. BOITAN, Iustina Alina, 2015. "Determinants Of Sustainable Banks’ Profitability. Evidence From Eu Countries," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 19(1), pages 21-39.
    9. Muhammad Ali, 2016. "Bank Profitability and its Determinants in Pakistan: A Panel Data Analysis after Financial Crisis," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 1-14, March.
    10. Yanikkaya, Halit & Gumus, Nihat & Pabuccu, Yasar Ugur, 2018. "How profitability differs between conventional and Islamic banks: A dynamic panel data approach," Pacific-Basin Finance Journal, Elsevier, vol. 48(C), pages 99-111.
    11. Lutfi, & Suyatno,, 2019. "Determinants of Bank Efficiency: Evidence from Regional Development Banks," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(3), pages 59-74.
    12. Asima Siddique & Omar Masood & Kiran Javaria & Dinh Tran Ngoc Huy, 2020. "A comparative study of performance of commercial banks in ASIAN developing and developed countries," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(2), pages 580-591, June.
    13. Muhammad Yusuf Amin & Syed Imran Khan & Noor Hassan, 2019. "Does Banking Sector Development have any Association with Economic Growth and Interest Rates in Pakistan?," Global Economics Review, Humanity Only, vol. 4(1), pages 100-107, March.
    14. Agnieszka Wojcik-Mazur, 2017. "Effect of Structural Liquidity on Profitability of Polish Commercial Banks in 2009–2016," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 15(66), pages 53-63.
    15. Nosheen & Abdul Rashid, 2021. "Financial soundness of single versus dual banking system: explaining the role of Islamic banks," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(1), pages 99-127, January.
    16. Muhammad Ali & Chin-Hong Puah, 2018. "Does Bank Size and Funding Risk Effect Banks’ Stability? A Lesson from Pakistan," Global Business Review, International Management Institute, vol. 19(5), pages 1166-1186, October.
    17. Muhammad Haris & Yong Tan & Ali Malik & Qurat Ul Ain, 2020. "A Study on the Impact of Capitalization on the Profitability of Banks in Emerging Markets: A Case of Pakistan," JRFM, MDPI, vol. 13(9), pages 1-21, September.
    18. Unal, Huseyin & Masih, Mansur, 2017. "Discerning causal relationship between operational cost and bank profit for commercial banks: Turkish evidence with ARDL approach," MPRA Paper 86391, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:qrfmpp:v:4:y:2012:i:2/3:p:255-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.