Business environment, political risk, governance, Shariah compliance and efficiency in insurance companies in the MENA region

Shaddady, Ali

doi:10.1057/s41288-021-00232-8

Cited by 9 publications

(5 citation statements)

References 113 publications

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“…Notably, the studies on bank behaviors typically rely on a one-dimensional indicator such as net income, ROA or ROE as a proxy of efficiency. Nevertheless, these one-dimensional indicators might not be able to reflect all bank-specific characteristics and probably produce measurement errors owing to differences in measurement for on-and off-balance issues (Klomp and De Haan, 2012; Shaddady and Moore, 2019; Shaddady, 2021). Accordingly, the current study adopts a multi-dimensional efficiency model, which is useful in assessing the financial performance (efficiency) of a bank.…”

Section: Methodsmentioning

confidence: 99%

“…In contrast, the adjusted CPM-DEA models include ESG among the dependent variables (Chen et al , 2021). The current study follows the efficiency literature by using quantile regression (QR) alongside OLS (Klomp and De Haan, 2012; Shaddady and Moore, 2019; Shaddady, 2021; Yen et al , 2023). The QR model can deal with the potential heterogeneity problem by providing a range of conditions depending on quantile functions (Lee and Li, 2012), where the model is created to estimate the median, which is more beneficial in handling the outliers compared to the mean regression (Koutsomanoli-Filippaki and Mamatzakis, 2011).…”

Section: Methodsmentioning

confidence: 99%

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ESG practices and bank efficiency: new evidence from an oil-driven economy

Shaddady,

Alnori

2024

IMEFM

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Purpose The purpose of this paper is to investigate whether banks’ environmental, social and governance (ESG) initiatives increase or decrease banks’ efficiency. Design/methodology/approach The sample used includes all listed banks in Saudi Arabia over the years 2016–2021. The authors performed different methods, including data envelopment analysis (DEA), ordinary least squares (OLS) and quantile regressions. Findings The OLS regression results show a negative linkage between ESG and banks’ efficiency. Further, the quantile regression analysis indicates that the ESG effect on banks' efficiency is negative across different quantiles. However, the DEA method shows that the DEA-generated scores for Banks’ efficiency are higher for ESG-adjusted scores in comparison to efficiency scores without incorporating ESG. Further, the comparison of the DEA-generated efficiency scores, over the sample period, of adjusted ESG banks still suffers from decreasing in their efficiency over the years. Concerning existing theory, the results are consistent with the stakeholders and the resource-based theories postulating that banks' ESG practices are ethical commitments and enable firms to gain competitive advantage and increase their reputation among stakeholders. Practical implications The findings of this study offer important implications for regulators and bankers. Policymakers and bank regulators should make collective efforts to encourage financial institutions to adopt green finance initiatives to create an efficient financial system capable of counteracting risks from the external environment and stimulating economic growth. Banks’ managers should be aware that ESG initiatives serve society and the environment and offer a positive influence on banks’ efficiency. Originality/value To the best of the authors’ knowledge, this is the first study to explore the influence of ESG activities on banks' efficiency using DEA for banks in Saudi Arabia.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

ESG practices and bank efficiency: new evidence from an oil-driven economy

Shaddady,

Alnori

2024

IMEFM

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“…Attention to the efficiency study of takaful institutions is still relatively small (Almulhim, 2019). Data Envelopment Analysis (DEA) is the most popular and most widely used method in researching the efficiency of Islamic Insurance institutions, as did Kader et al (2010), Lee et al (2018Lee et al ( , 2019, Xin et al (2019), Yakob et al (2014), Benyoussef and Hemrit (2019), Almulhim (2019), andShaddady (2022).…”

Section: Themes In Takaful Studiesmentioning

confidence: 99%

History and Development of Takaful Research: A Bibliometric Review

Alam,

Fianto,

Ratnasari

et al. 2023

SAGE Open

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This paper explored a trend analysis related to takaful research from 1989 until March 2022. This research aims to determine: (1) the current growth and trends of publications in takaful; (2) the most productive contributors in takaful studies; (3) the highly-cited documents in takaful research; and (4) the essential keywords and themes involved in the takaful studies. The data was obtained through the Scopus database with the keywords “takaful,”“Islamic insurance,” or “sharia insurance.” The search resulted in 423 documents and became 356 documents after screening. The data has been exported and analyzed using tools such as Biblioshiny, VOSviewer, Publish or Perish (PoP) and Microsoft Excel. The results showed that most publications were in 2017 and 2020. The most significant contributor that published the most research documents were Syed Ahmad Salman by the author (21 publications), International Islamic University Malaysia by Institution (24,4%), English by language (97,5%), Malaysia by country (64,04%), Journal of Islamic Accounting and Business Research by title (22 publications). This study found the article “the cost efficiency of takaful insurance companies” written by Kader as the most cited publication. Moreover, based on the results of network visualization mapping, takaful research was divided into four main themes: risk management in the takaful industry and its relation with Islamic banks, efficiency in the takaful industry, and behavior of takaful customers, and development of takaful. This study recommended a systematic literature review on popular topics such as efficiency and family takaful for further studies.

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“…To evaluate performance optimization, they also test them against competitors in the industry. Locating production processes and units that are not producing in and of themselves is emphasized (Pasiouras & Gaganis, 2013; Shaddady, 2022). The lack of research on the profit efficiency of Indian life insurance businesses is what prompted this study to examine the cost and profit efficiency of the Indian life insurance market.…”

Section: Introductionmentioning

confidence: 99%

How Profit Efficient is Indian Life Insurance Industry: A DEA Study

Siddiqui,

Shaddady

2023

SAGE Open

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The cost and profit efficiency of all Indian life insurance businesses is examined in this article using the data development analysis technique for the years 2017 through 2021. The Tobit regression is also used in this study to look into how well life insurance performs in relation to company factors. Cost efficiency scores were higher than profit efficiency ratings, as shown by the study. According to this, one of the most important inefficiencies for Indian life insurance is revenue inefficiency. In addition, state-owned life insurance firm in India is more profitable and economical than private ones, according to this study. In general, joint life insurers are more cost-effective than domestic life insurance companies, whereas domestic life insurance companies are more profit-efficient than joint venture insurers. The profitability and cost-effectiveness of life insurers are positively impacted by the claims ratio. While there are favorable effects of the distribution ratio and market share, respectively, effects on profit and cost-effectiveness. During the study period, the Indian life insurance businesses were relatively cost and profit efficient, according to empirical evidence. This study is the first to examine the profit and cost efficiencies of all Indian life insurance businesses. Decision-makers, top management, regulators, and other industry stakeholders will all gain from the research.

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Business environment, political risk, governance, Shariah compliance and efficiency in insurance companies in the MENA region

Cited by 9 publications

References 113 publications

ESG practices and bank efficiency: new evidence from an oil-driven economy

ESG practices and bank efficiency: new evidence from an oil-driven economy

History and Development of Takaful Research: A Bibliometric Review

How Profit Efficient is Indian Life Insurance Industry: A DEA Study

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