Islamic versus conventional banks: a comparative analysis on capital structure

Belanes, Amel

doi:10.1504/aajfa.2015.070292

Cited by 7 publications

(10 citation statements)

References 19 publications

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“…This is consistent with the work of Toumi et al (2015Toumi et al ( , 2011 which showed that the capital ratio is negatively related to the size of IBs and hence there is a positive relationship between size and IBs' leverage. Furthermore, it was later shown by Belanes (2015) that size has a negative influence on IBs' capital ratio; therefore, its positive impact on IB leverage is corroborated. Large banks tend to be more diversified and have relatively easier access to financial markets.…”

Section: Determinants Of Capital Structurementioning

confidence: 86%

“…Growth opportunities À þ /À Notes: A positive sign "þ" indicates that the variable has a positive relationship with the leverage. A negative sign "À" suggests a negative relationship between variable and leverage Source: Frank & Goyal (2009) QRFM 9,3 Presently, there is limited research on the determinants of IB capital structure, including Baltacı and Ayaydın (2014), Belanes (2015), Toumi et al (2015Toumi et al ( , 2011. As far as the literature is concerned, the effect of the size on IB leverage is supported by the trade-off theory.…”

Section: Determinants Of Capital Structurementioning

confidence: 99%

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Capital structure of Islamic banks: a critical review of theoretical and empirical research

Sakti

Tareq

Saiti

et al. 2017

QRFM

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Purpose: This paper aims to critically evaluate theoretical and empirical research into capital structure practices in Islamic banks (IBs) from four perspectives, namely, theoretical aspect and its nature, determinants of capital structure in IBs, links between capital structure and risk management and nexus between capital structure and performance of IBs. Design/methodology/approach: The authors will review and examine past studies on IBs' capital structure from both theoretical and empirical research. Findings: The paper concludes that most of the literature on IB capital structure is largely theoretical than empirical. The existing studies on IB capital structure have various limitations, which suggest a need for detailed empirical work. Detailed empirical research in the field of capital structure will support bank managers and policymakers in making decisions about improving capital structure. Originality/value: This research will make several noteworthy contributions to address literature gaps for IB capital structure. Furthermore, this paper will identify areas for future research into capital structure practices and IB financing decisions. Lastly, this paper will equip regulators with guidelines for establishing sound capital requirements for IB.

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Section: Determinants Of Capital Structurementioning

confidence: 86%

Section: Determinants Of Capital Structurementioning

confidence: 99%

Capital structure of Islamic banks: a critical review of theoretical and empirical research

Sakti

Tareq

Saiti

et al. 2017

QRFM

View full text Add to dashboard Cite

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“…It can be said that bigger the company's size, easier to acquire debt. Those statement is relevant with several studies such as Belanes [8] and Zou and Xiao [9]. H2: Company's size has positive impact on capital structure.…”

Section: B Company's Sizementioning

confidence: 95%

The Effect of Company’s External and Internal Factors to Firm’s Value with Capital Structure as Intervening Variable in Listed Construction’s Company in Indonesia

Nugoho¹,

Andrianto²

2020

Proceedings of the 3rd Asia Pacific Management Research Conference (APMRC 2019)

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Aim of this study focused on impact of company's external (inflation) and internal (tax shield, profitability, growth, size, assets) factors to firm's value with capital structure as intervening variable in listed construction's company in Indonesia. Data which being used for this study from company's financial report from 2014 until 2017. Structural equation modelling chosen as a tool for analyzing data being chose, SMARTPLS 3.0 chosen as a software for discovering the result. The study found out that the growth of the company has a significant impact for capital structure decision making process. Result of this study can be used as a suggestion for stakeholder to developing a better capital structure decision especially in construction industry in Indonesia in order to maximized the value of the company.

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“…In the area of bankruptcy prediction, the work of and Altman (1968) and Beaver (1966), seem to have been the real starting point and reference for many empirical studies. Despite the wealth of work that treated the efficiency and performance issues generally using DEA method (Belanes and Hassiki, 2012);Iqbal, 2001;Srairi, 2010; and panel data (Abedifar et al, 2013;Beck et al, 2013;Mollah & Zaman, 2015), few authors have adapted the same methodology of bankruptcy prediction in the distinction between Islamic and conventional banks (Khediri, Charfeddine, & Youssef, 2015;Metwally, 1997;Olson and Zoubi, 2008); Table 1 summarizes their contributions in this area.…”

Section: Literature Reviewmentioning

confidence: 99%

Using partial least square discriminant analysis to distinguish between Islamic and conventional banks in the MENA region

2018

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The deterioration of bank profitability poses a threat not only to the interests of consumers and internal staff members but also affects investors who may equally suffer from significant financial losses. It is important to establish an effective system which assists investors in their investment choices. In prior literature, traditional models have been developed, but achieved short‐term performances such as logistic regression and discriminant analysis. This paper applies a partial least squares discriminant analysis (PLS‐DA) to distinguish between conventional and Islamic banks in the Middle East and North Africa (MENA) region based on the financial information for the period 2005–2011. This method can successfully identify the non‐linearity and correlations between financial indicators. The results demonstrate superior performance of the proposed method. On one hand, our model can select all financial ratios to distinguish between banks and at the same time identify the most important variables in the distinction process. On the other hand, the proposed model has high levels in terms of accuracy and stability.

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Islamic versus conventional banks: a comparative analysis on capital structure

Cited by 7 publications

References 19 publications

Capital structure of Islamic banks: a critical review of theoretical and empirical research

Capital structure of Islamic banks: a critical review of theoretical and empirical research

The Effect of Company’s External and Internal Factors to Firm’s Value with Capital Structure as Intervening Variable in Listed Construction’s Company in Indonesia

Using partial least square discriminant analysis to distinguish between Islamic and conventional banks in the MENA region

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