Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock Exchange

<p>The purpose of this study is to test the relationship between the market power variables and the bank concentration of Islamic banks registered in Bahrain Stock Exchange, using the HHI index of loans, in addition to other variables such as bank solvency, operational efficiency and financial...

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Main Author: Tharwah Shaalan
Format: Article
Language:English
Published: EconJournals 2019-01-01
Series:International Journal of Economics and Financial Issues
Online Access:https://www.econjournals.com/index.php/ijefi/article/view/7452
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author Tharwah Shaalan
author_facet Tharwah Shaalan
author_sort Tharwah Shaalan
collection DOAJ
description <p>The purpose of this study is to test the relationship between the market power variables and the bank concentration of Islamic banks registered in Bahrain Stock Exchange, using the HHI index of loans, in addition to other variables such as bank solvency, operational efficiency and financial leverage on the financial performance of these banks, which are represented by the return on assets and the efficiency of lending profitability using regression data panel analysis. To test the hypotheses of this study, the researcher employed the multiple regression method as well as the same using the panel data. The results of this applied study determined a fundamental impact exerted by the bank’s capital adequacy and market share on the rate of return on assets as well as the intrinsic effect of operational efficiency variables and bank concentration to contribute to the efficiency variable of lending to these banks.</p><p><strong>Keywords</strong>: Islamic banks, bank performance, financial performance, market power, market concentration.</p><p><strong>JEL Classifications</strong>: C23, G21, L11</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.7452">https://doi.org/10.32479/ijefi.7452</a></p>
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spelling doaj.art-7809e2f14bdd4f6593f4dca0ff687cd22023-02-15T16:14:47ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382019-01-01912172243699Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock ExchangeTharwah Shaalan<p>The purpose of this study is to test the relationship between the market power variables and the bank concentration of Islamic banks registered in Bahrain Stock Exchange, using the HHI index of loans, in addition to other variables such as bank solvency, operational efficiency and financial leverage on the financial performance of these banks, which are represented by the return on assets and the efficiency of lending profitability using regression data panel analysis. To test the hypotheses of this study, the researcher employed the multiple regression method as well as the same using the panel data. The results of this applied study determined a fundamental impact exerted by the bank’s capital adequacy and market share on the rate of return on assets as well as the intrinsic effect of operational efficiency variables and bank concentration to contribute to the efficiency variable of lending to these banks.</p><p><strong>Keywords</strong>: Islamic banks, bank performance, financial performance, market power, market concentration.</p><p><strong>JEL Classifications</strong>: C23, G21, L11</p><p>DOI: <a href="https://doi.org/10.32479/ijefi.7452">https://doi.org/10.32479/ijefi.7452</a></p>https://www.econjournals.com/index.php/ijefi/article/view/7452
spellingShingle Tharwah Shaalan
Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock Exchange
International Journal of Economics and Financial Issues
title Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock Exchange
title_full Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock Exchange
title_fullStr Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock Exchange
title_full_unstemmed Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock Exchange
title_short Industry Structure, Bank Adequacy, Operational Efficiency: Financial Performance Applied Study on the Islamic Banks Listed in Bahrain Stock Exchange
title_sort industry structure bank adequacy operational efficiency financial performance applied study on the islamic banks listed in bahrain stock exchange
url https://www.econjournals.com/index.php/ijefi/article/view/7452
work_keys_str_mv AT tharwahshaalan industrystructurebankadequacyoperationalefficiencyfinancialperformanceappliedstudyontheislamicbankslistedinbahrainstockexchange