Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries

This study attempts to discover the impact of the limitation of a country’s governance on Islamic and conventional bank revenue efficiency by using data from the countries of three regions. Non-parametric Data Envelopment Analysis (DEA) employed to measure the bank revenue efficiency level. The appl...

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Main Authors: Hussain, Hafezali Iqbal, Kamarudin, Fakarudin, Mohamad Anwar, Nazratul Aina, Md. Nassir, Annuar, Sufian, Fadzlan, Tan, Khar Mang
Format: Article
Language:English
Published: Vilnius University Press 2020
Online Access:http://psasir.upm.edu.my/id/eprint/89276/1/ABSTRACT.pdf
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author Hussain, Hafezali Iqbal
Kamarudin, Fakarudin
Mohamad Anwar, Nazratul Aina
Md. Nassir, Annuar
Sufian, Fadzlan
Tan, Khar Mang
author_facet Hussain, Hafezali Iqbal
Kamarudin, Fakarudin
Mohamad Anwar, Nazratul Aina
Md. Nassir, Annuar
Sufian, Fadzlan
Tan, Khar Mang
author_sort Hussain, Hafezali Iqbal
collection UPM
description This study attempts to discover the impact of the limitation of a country’s governance on Islamic and conventional bank revenue efficiency by using data from the countries of three regions. Non-parametric Data Envelopment Analysis (DEA) employed to measure the bank revenue efficiency level. The applied method of estimation consists of pooled Ordinary Least Square (OLS), Fixed Effect Model (FEM), Random Effect Model (REM), and the Generalized Method of Moments (GMM) to examine the impact of country governance and other potential determinants on bank efficiency. This study finds out that the dimensions of voice and accountability positively influenced Islamic and conventional bank revenue efficiency, however, the political stability and absence of violence and control of corruption provided the negative relationship. Furthermore, other dimensions of regulatory quality, government effectiveness and rule of law significantly negative with the conventional bank revenue efficiency. Implications from the study allow the related parties to identify the significant dimensions of a country’s governance to the efficiency of the banks to ensure better bank performance.
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spelling upm.eprints-892762021-10-07T03:58:13Z http://psasir.upm.edu.my/id/eprint/89276/ Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries Hussain, Hafezali Iqbal Kamarudin, Fakarudin Mohamad Anwar, Nazratul Aina Md. Nassir, Annuar Sufian, Fadzlan Tan, Khar Mang This study attempts to discover the impact of the limitation of a country’s governance on Islamic and conventional bank revenue efficiency by using data from the countries of three regions. Non-parametric Data Envelopment Analysis (DEA) employed to measure the bank revenue efficiency level. The applied method of estimation consists of pooled Ordinary Least Square (OLS), Fixed Effect Model (FEM), Random Effect Model (REM), and the Generalized Method of Moments (GMM) to examine the impact of country governance and other potential determinants on bank efficiency. This study finds out that the dimensions of voice and accountability positively influenced Islamic and conventional bank revenue efficiency, however, the political stability and absence of violence and control of corruption provided the negative relationship. Furthermore, other dimensions of regulatory quality, government effectiveness and rule of law significantly negative with the conventional bank revenue efficiency. Implications from the study allow the related parties to identify the significant dimensions of a country’s governance to the efficiency of the banks to ensure better bank performance. Vilnius University Press 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/89276/1/ABSTRACT.pdf Hussain, Hafezali Iqbal and Kamarudin, Fakarudin and Mohamad Anwar, Nazratul Aina and Md. Nassir, Annuar and Sufian, Fadzlan and Tan, Khar Mang (2020) Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries. Transformations in Business & Economics, 19 (1). 191 - 228. ISSN 1648-4460 http://www.transformations.knf.vu.lt/49/article/impa
spellingShingle Hussain, Hafezali Iqbal
Kamarudin, Fakarudin
Mohamad Anwar, Nazratul Aina
Md. Nassir, Annuar
Sufian, Fadzlan
Tan, Khar Mang
Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries
title Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries
title_full Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries
title_fullStr Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries
title_full_unstemmed Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries
title_short Impact of country’s governance dimensions on bank revenue efficiency: overview on middle east, Southeast Asia, and South Asia countries
title_sort impact of country s governance dimensions on bank revenue efficiency overview on middle east southeast asia and south asia countries
url http://psasir.upm.edu.my/id/eprint/89276/1/ABSTRACT.pdf
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