Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries

This study aims to investigate the significant elements that predict profitability behavior of Islamic banks within the composition of cost efficiency.It is not clear whether Islamic banks can simultaneously achieve higher profitability with cost efficiency.The result of the first model in this stud...

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Main Authors: Aliyu, Sirajo, Mohd Yusof, Rosylin
Format: Article
Language:English
Published: EconJournals 2016
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/20558/1/IJEFI%206%204%202016%201736%201743.pdf
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author Aliyu, Sirajo
Mohd Yusof, Rosylin
author_facet Aliyu, Sirajo
Mohd Yusof, Rosylin
author_sort Aliyu, Sirajo
collection UUM
description This study aims to investigate the significant elements that predict profitability behavior of Islamic banks within the composition of cost efficiency.It is not clear whether Islamic banks can simultaneously achieve higher profitability with cost efficiency.The result of the first model in this study found all predicting variables are significantly explaining profitability after robust standard errors of fixed effect model. Also, the interaction between cost efficiency and bank activities within each country’s macroeconomic environment presents an attractive outcome of expense preference behavior.The paper advocated for prioritization of cost efficiency which has the tendencies of attaining both utilization of available resources and higher returns to satisfy all the stakeholders.
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spelling uum-205582017-01-05T01:38:17Z https://repo.uum.edu.my/id/eprint/20558/ Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries Aliyu, Sirajo Mohd Yusof, Rosylin HG Finance This study aims to investigate the significant elements that predict profitability behavior of Islamic banks within the composition of cost efficiency.It is not clear whether Islamic banks can simultaneously achieve higher profitability with cost efficiency.The result of the first model in this study found all predicting variables are significantly explaining profitability after robust standard errors of fixed effect model. Also, the interaction between cost efficiency and bank activities within each country’s macroeconomic environment presents an attractive outcome of expense preference behavior.The paper advocated for prioritization of cost efficiency which has the tendencies of attaining both utilization of available resources and higher returns to satisfy all the stakeholders. EconJournals 2016 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/20558/1/IJEFI%206%204%202016%201736%201743.pdf Aliyu, Sirajo and Mohd Yusof, Rosylin (2016) Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries. International Journal of Economics and Financial Issues, 6 (4). pp. 1736-1743. ISSN 2146-4138 https://www.econjournals.com/index.php/ijefi/article/view/2799
spellingShingle HG Finance
Aliyu, Sirajo
Mohd Yusof, Rosylin
Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries
title Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries
title_full Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries
title_fullStr Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries
title_full_unstemmed Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries
title_short Profitability and cost efficiency of Islamic banks: a panel analysis of some selected countries
title_sort profitability and cost efficiency of islamic banks a panel analysis of some selected countries
topic HG Finance
url https://repo.uum.edu.my/id/eprint/20558/1/IJEFI%206%204%202016%201736%201743.pdf
work_keys_str_mv AT aliyusirajo profitabilityandcostefficiencyofislamicbanksapanelanalysisofsomeselectedcountries
AT mohdyusofrosylin profitabilityandcostefficiencyofislamicbanksapanelanalysisofsomeselectedcountries