Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries
The aim of this research is to develop a conceptual model that includes variables related to financing modes, risk-taking, efficiency, and Islamic bank profitability in GCC Countries. The results indicate that the total effect of financing modes on banks’ profitability is high and statistically sign...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2020-01-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23322039.2020.1750258 |
| _version_ | 1818915376269885440 |
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| author | Samir Belkhaoui Naif Alsagr Stefan F. van Hemmen |
| author_facet | Samir Belkhaoui Naif Alsagr Stefan F. van Hemmen |
| author_sort | Samir Belkhaoui |
| collection | DOAJ |
| description | The aim of this research is to develop a conceptual model that includes variables related to financing modes, risk-taking, efficiency, and Islamic bank profitability in GCC Countries. The results indicate that the total effect of financing modes on banks’ profitability is high and statistically significant. The results show that a higher- level of participation in Mudharabah and Musharakah financing will generate high credit risk. Murabahah financing increases, directly and indirectly, the profitability and improve simultaneously the capitalization ratio and the cost efficiency for Islamic banks in the GCC countries. The contribution of our research is on two levels. On the one hand, our study is an addition to the literature that examined the determinants of Islamic banks performance. The conceptual model added risk-taking and cost efficiency as intervening variables in the profit-financing modes relationship. On the other hand, this research uses path analysis method, called second-generation approach, to test the model. |
| first_indexed | 2024-12-20T00:01:18Z |
| format | Article |
| id | doaj.art-301a5da933324e78a12becee4521da8e |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-20T00:01:18Z |
| publishDate | 2020-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-301a5da933324e78a12becee4521da8e2022-12-21T20:00:50ZengTaylor & Francis GroupCogent Economics & Finance2332-20392020-01-018110.1080/23322039.2020.17502581750258Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countriesSamir Belkhaoui0Naif Alsagr1Stefan F. van Hemmen2Monastir UniversityUniversitat Autonoma de BarcelonaUniversitat Autonoma de BarcelonaThe aim of this research is to develop a conceptual model that includes variables related to financing modes, risk-taking, efficiency, and Islamic bank profitability in GCC Countries. The results indicate that the total effect of financing modes on banks’ profitability is high and statistically significant. The results show that a higher- level of participation in Mudharabah and Musharakah financing will generate high credit risk. Murabahah financing increases, directly and indirectly, the profitability and improve simultaneously the capitalization ratio and the cost efficiency for Islamic banks in the GCC countries. The contribution of our research is on two levels. On the one hand, our study is an addition to the literature that examined the determinants of Islamic banks performance. The conceptual model added risk-taking and cost efficiency as intervening variables in the profit-financing modes relationship. On the other hand, this research uses path analysis method, called second-generation approach, to test the model.http://dx.doi.org/10.1080/23322039.2020.1750258financing modesriskefficiencyprofitabilityislamic bankpath analysisgcc countries |
| spellingShingle | Samir Belkhaoui Naif Alsagr Stefan F. van Hemmen Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries Cogent Economics & Finance financing modes risk efficiency profitability islamic bank path analysis gcc countries |
| title | Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries |
| title_full | Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries |
| title_fullStr | Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries |
| title_full_unstemmed | Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries |
| title_short | Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries |
| title_sort | financing modes risk efficiency and profitability in islamic banks modeling for the gcc countries |
| topic | financing modes risk efficiency profitability islamic bank path analysis gcc countries |
| url | http://dx.doi.org/10.1080/23322039.2020.1750258 |
| work_keys_str_mv | AT samirbelkhaoui financingmodesriskefficiencyandprofitabilityinislamicbanksmodelingforthegcccountries AT naifalsagr financingmodesriskefficiencyandprofitabilityinislamicbanksmodelingforthegcccountries AT stefanfvanhemmen financingmodesriskefficiencyandprofitabilityinislamicbanksmodelingforthegcccountries |