Country governance and the performance of Islamic and conventional bank: international evidence
The impact of corporate governance on banking firms has been widely documented in the literature. Noticeably absent is an extensive examination of the impact of country governance on the efficiency of banking firms. This limitation is surprising, given the fact that the banking sector remains the mo...
| Main Authors: | , , , |
|---|---|
| Format: | Book Section |
| Language: | English |
| Published: |
Edward Elgar Publishing
2016
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/52704/1/Country%20governance%20and%20the%20performance%20of%20Islamic%20and%20conventional%20bank.pdf |
| _version_ | 1825930760383627264 |
|---|---|
| author | Sufian, Fadzlan Hassan, M. Kabir Kamarudin, Fakarudin Md Nassir, Annuar |
| author2 | Hassan, M. Kabir |
| author_facet | Hassan, M. Kabir Sufian, Fadzlan Hassan, M. Kabir Kamarudin, Fakarudin Md Nassir, Annuar |
| author_sort | Sufian, Fadzlan |
| collection | UPM |
| description | The impact of corporate governance on banking firms has been widely documented in the literature. Noticeably absent is an extensive examination of the impact of country governance on the efficiency of banking firms. This limitation is surprising, given the fact that the banking sector remains the most important channel for savings and allocations of credit in the economy. By using data on 454 Islamic and conventional banks from 19 countries offering Islamic banking and finance products and services, this chapter attempts to fill this demanding gap. We find that voice and accountability positively influence the efficiency of both Islamic and conventional banks. On the other hand, we observe the negative impact of political stability, absence of violence and control of corruption. The findings indicate that government effectiveness, regulatory quality and rule of law negatively influence the efficiency of conventional banks, but not so in the case of Islamic banks. |
| first_indexed | 2024-03-06T09:16:28Z |
| format | Book Section |
| id | upm.eprints-52704 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:16:28Z |
| publishDate | 2016 |
| publisher | Edward Elgar Publishing |
| record_format | dspace |
| spelling | upm.eprints-527042021-09-05T00:41:51Z http://psasir.upm.edu.my/id/eprint/52704/ Country governance and the performance of Islamic and conventional bank: international evidence Sufian, Fadzlan Hassan, M. Kabir Kamarudin, Fakarudin Md Nassir, Annuar The impact of corporate governance on banking firms has been widely documented in the literature. Noticeably absent is an extensive examination of the impact of country governance on the efficiency of banking firms. This limitation is surprising, given the fact that the banking sector remains the most important channel for savings and allocations of credit in the economy. By using data on 454 Islamic and conventional banks from 19 countries offering Islamic banking and finance products and services, this chapter attempts to fill this demanding gap. We find that voice and accountability positively influence the efficiency of both Islamic and conventional banks. On the other hand, we observe the negative impact of political stability, absence of violence and control of corruption. The findings indicate that government effectiveness, regulatory quality and rule of law negatively influence the efficiency of conventional banks, but not so in the case of Islamic banks. Edward Elgar Publishing Hassan, M. Kabir 2016 Book Section PeerReviewed text en http://psasir.upm.edu.my/id/eprint/52704/1/Country%20governance%20and%20the%20performance%20of%20Islamic%20and%20conventional%20bank.pdf Sufian, Fadzlan and Hassan, M. Kabir and Kamarudin, Fakarudin and Md Nassir, Annuar (2016) Country governance and the performance of Islamic and conventional bank: international evidence. In: Handbook of Empirical Research on Islam and Economic Life. Edward Elgar Publishing, Cheltenham, United Kindom, pp. 306-331. ISBN 1784710725/9781784710729; EISBN: 9781784710736 https://www.elgaronline.com/view/edcoll/9781784710729/9781784710729.00021.xml 10.4337/9781784710736.00021 |
| spellingShingle | Sufian, Fadzlan Hassan, M. Kabir Kamarudin, Fakarudin Md Nassir, Annuar Country governance and the performance of Islamic and conventional bank: international evidence |
| title | Country governance and the performance of Islamic and conventional bank: international evidence |
| title_full | Country governance and the performance of Islamic and conventional bank: international evidence |
| title_fullStr | Country governance and the performance of Islamic and conventional bank: international evidence |
| title_full_unstemmed | Country governance and the performance of Islamic and conventional bank: international evidence |
| title_short | Country governance and the performance of Islamic and conventional bank: international evidence |
| title_sort | country governance and the performance of islamic and conventional bank international evidence |
| url | http://psasir.upm.edu.my/id/eprint/52704/1/Country%20governance%20and%20the%20performance%20of%20Islamic%20and%20conventional%20bank.pdf |
| work_keys_str_mv | AT sufianfadzlan countrygovernanceandtheperformanceofislamicandconventionalbankinternationalevidence AT hassanmkabir countrygovernanceandtheperformanceofislamicandconventionalbankinternationalevidence AT kamarudinfakarudin countrygovernanceandtheperformanceofislamicandconventionalbankinternationalevidence AT mdnassirannuar countrygovernanceandtheperformanceofislamicandconventionalbankinternationalevidence |