Comparing the Financial Performance of Islamic Banks in 10 Countries: New Evidence using Entropy and WASPAS Methods

Altinay, Ayşenur Tarakçioğlu; Doğan, Mesut; Kevser, Mustafa

doi:10.18488/29.v9i2.3110

Cited by 3 publications

(3 citation statements)

References 25 publications

(37 reference statements)

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“…According to Gill, Biger, and Mathur (2010) profitability correlated with collection of accounts receivables. The management of accounts receivables is a vital corporate finance component as it directly influences the firm's liquidity, profitability and growth (Eisdorfer, Giaccotto, & White, 2013;ALTINAY et al, 2022;Moreno-Garcia et al, 2022;Levytska et al, 2022). Good accounts receivable policy is expected to reduce the number of days for the accounts due (Michalski, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Financial Assistance, Accounts Receivable Management and University Size on Financial Distress

Muhammad¹,

Roslan²,

Ghani³

et al. 2023

R. Econ. and Finan.

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This study examines the factors influencing financial distress faced by a university in Malaysia. Specifically, this study examines the effect of financial assistance to students, accounts receivable management and university size on financial distress of a university in Malaysia. This study utilises questionnaire survey distributed to the employees who are responsible in the revenue management and credit control activities in the university. The results of this study shows that financial assistance to students and accounts receivable management significantly and positively influence the financial distress faced by the university. This study however, shows no evidence that university size influences financial distress in the university. The findings in this study indicate that universities can strategize ways to increase opportunities for financial assistance to students in order to reduce chances of the university facing financial distress. In addition, management of the universities also need to improve their accounts receivable management. This study provides new findings on factors influencing financial distress in the context of the education sector.

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Section: Literature Reviewmentioning

confidence: 99%

The Effect of Financial Assistance, Accounts Receivable Management and University Size on Financial Distress

Muhammad¹,

Roslan²,

Ghani³

et al. 2023

R. Econ. and Finan.

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“…Total assets have been used to measure Islamic banking performance as they represent the size and growth of the Islamic banking industry in each nation (Altinay et al, 2022). Total assets are a good representation of the Islamic banking industry's size as they reflect growth, diversity, and market presence, indicating the industry's development and significance in financial markets (Al-Salem, 2008).…”

Section: Introductionmentioning

confidence: 99%

The SDG-Islamic Banking Nexus: Insights from the OIC Top Economies

Basalma

2024

SJEKI

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– Islamic Banking and Finance (IBF) has emerged as a promising alternative to conventional finance, with its principles aligned with the United Nations' Sustainable Development Goals (SDGs). This study investigates the relationship between the performance of IBF in five major Organization of Islamic Cooperation (OIC) countries - Saudi Arabia, Turkey, Indonesia, Malaysia, and the United Arab Emirates - and key SDG indicators: return on assets, regulatory capital to assets, regulatory Tier 1 capital to risk-weighted assets, and broad money to total reserves ratio. Employing panel data analysis, the research reveals that three out of the four SDG indicators significantly impact the total assets of Islamic banks, while the regulatory capital-to-assets indicator shows no significant relationship. These findings underscore the complex interplay between profitability, risk management, liquidity, and asset growth in the IBF sector. The study contributes to the growing body of literature on the role of IBF in promoting sustainable development. The results have important implications for regulators, policymakers, and Islamic banking institutions, highlighting the need for a balanced approach that reconciles financial performance with social and environmental objectives. By aligning IBF with the SDGs, this research paves the way for a more sustainable and inclusive financial system that can drive economic growth, social welfare, and environmental sustainability in the Muslim world and beyond.========================================================================================================ABSTRAK – Hubungan SDG dengan Perbankan Syariah: Wawasan dari Negara-Negara Utama OKI. Perbankan dan Keuangan Syariah telah menjelma menjadi alternatif yang menjanjikan bagi keuangan konvensional, dengan prinsip-prinsipnya yang selaras dengan tujuan pembangunan berkelanjutan (SDGs). Penelitian ini menyelidiki hubungan antara kinerja total aset perbankan dan keuangan Islam di lima negara utama OKI, yaitu Saudi Arabia, Turkey, Indonesia, Malaysia, and the United Arab Emirates, dan beberapa indikator SDG yaitu laba atas aset, modal peraturan terhadap aset, peraturan modal Tier 1 terhadap aset tertimbang menurut risiko, dan uang beredar terhadap total cadangan. Studi ini menggunakan pendekatan analisis data panel yang mengumpulkan regresi kuadrat terkecil biasa menggunakan data sepuluh tahun dari tahun 2013 hingga 2022. Hasilnya menunjukkan bahwa tiga dari empat indikator SDG mempunyai dampak signifikan terhadap total aset perbankan syariah, sedangkan peraturan modal terhadap total aset perbankan syariah tidak berpengaruh signifikan terhadap total aset perbankan syariah. Temuan ini menunjukkan adanya trade-off antara profitabilitas, manajemen risiko, likuiditas, dan pertumbuhan aset di perbankan syariah. Temuan ini mempunyai implikasi bagi regulator, pembuat kebijakan, dan lembaga perbankan Islam, serta berkontribusi terhadap pemahaman keuangan yang bertanggung jawab dan pembangunan berkelanjutan.

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“…2012). The importance of non-performing financing on overall financial performance and not only focus on credit growth for profitability but also on controlled and supervised loan allocation (Altinay et al, 2022); Then, net interest affects the measurement of efficiency and leaves an impression on investors. Earnings from fees and commissions provide the main source of income used by credit institutions to offset the decrease in the interest margin (Dadang, L., 2021).…”

Section: Introductionmentioning

confidence: 99%

Determinants of Banking Operational Efficiency and the Relationship Between the Factors to Market Price: Evidence from Indonesia

Siagian

2023

Economics

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Banks play an essential role in the economy, therefore, their performance must be maintained. Compared to other business sectors, the banking sector has continually achieved the greatest market shares over several periods. When a bank becomes more efficient, it can raise its income and market prices as well as investor confidence. This study examines various factors that influence operational efficiency and the implication for market prices. In 2016 – 2021 years, 28 banking companies were sampled from all banking companies listed on the Indonesia Stock Exchange. Purposive sampling was used for data collection, and linear multiple regression was used for data processing by running tests such as descriptive statistics, determination, regression equations, hypotheses, and implications. The findings reveal a statistically significant relationship between a firm’s size, capital adequacy, loan-to-deposit ratio, net interest, and inflation with operational efficiency, while non-performing loans and exchange rates have no a substantial impact. Additionally, capital adequacy, loan-to-deposit ratio, inflation, and exchange rates had statistically significant effects on market prices, although operational efficiency, non-performing loans, and net interest did not. The mediating analysis reveals that there is no interaction between non-performing loans and net interest with market prices, but it is a mediator for other variables. The research is important for a variety of stakeholders, including managers, investors, and policymakers, who are interested in resolving banking business operations, increasing financial performance, and preserving market prices by establishing mitigation strategies related to specific-internal and external factors.

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Comparing the Financial Performance of Islamic Banks in 10 Countries: New Evidence using Entropy and WASPAS Methods

Cited by 3 publications

References 25 publications

The Effect of Financial Assistance, Accounts Receivable Management and University Size on Financial Distress

The Effect of Financial Assistance, Accounts Receivable Management and University Size on Financial Distress

The SDG-Islamic Banking Nexus: Insights from the OIC Top Economies

Determinants of Banking Operational Efficiency and the Relationship Between the Factors to Market Price: Evidence from Indonesia

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