New insights into bank asset securitization: The impact of religiosity

Abdelsalam, Omneya; Elnahass, Marwa; Batten, Jonathan A.; Mollah, Sabur

doi:10.1016/j.jfs.2021.100854

Cited by 16 publications

(18 citation statements)

References 115 publications

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“…This prediction is also in line with prior evidence (Elnahass et al 2014(Elnahass et al , 2018Abdelsalam et al 2016Abdelsalam et al , 2020Lassoued et al 2018;Salem et al 2021), showing that Islamic banks engage in a higher financial reporting quality and lower managerial opportunism as compared to their conventional counterparts. That premise is also consistent with prior literature, which documents that religious orientation and robust institutional environments ultimately shape corporate behaviour and mitigate aggressive earnings management (Dyreng et al 2012;McGuire et al 2012;Kanagaretnam et al 2015;Abdelsalam et al 2021). Moreover, Islamic banks commonly act under a predominant set of social norms.…”

supporting

confidence: 88%

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Earnings management and internal governance mechanisms: The role of religiosity

Elnahass

Salama

Yusuf

2022

Research in International Business and Finance

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supporting

confidence: 88%

“…Moreover, the principal-agent relationships in Islamic banks are complex compared to their conventional counterparts (Elnahass et al 2020a;Abdelsalam et al 2021). Depositors in Islamic banks, i.e., Investment account holders (IAHs), have no right to intervene in their funds' financial and operational management.…”

mentioning

confidence: 99%

Earnings management and internal governance mechanisms: The role of religiosity

Elnahass

Salama

Yusuf

2022

Research in International Business and Finance

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“…Their results, however, could be driven by the fact that these authors include securitization income in non-interest income. Abdelsalam et al (2021); Agostino & Mazzuca (2011) find no significant relationship between non-interest income and securitization.…”

Section: Previous Literaturementioning

confidence: 92%

“…The Scale and Skill of Securitization Switzerland, Farruggio & Uhde (2015) extends these findings by showing that banks in markets with strong competition and high economic growth are more likely to securitize their assets. Using data of banks in the Middle East, North Africa and South-East Asia, Abdelsalam et al (2021) conclude that banks from countries where religion is important are less likely to securitize.…”

Section: Previous Literaturementioning

confidence: 99%

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Securitization, loan sales and distance

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Driven by data limitations, many bank-level studies have resorted to the use of securitization proxies to measure securitization by banks. The diverging range of available proxies raises the question of whether all of them actually measure the same thing, namely securitization. We explore this question for a wide range of securitization proxies for large U.S. commercial banks (2011)(2012)(2013)(2014)(2015)(2016)(2017). We view securitization as an unobserved variable and use a form of Structural Equation Modeling to investigate whether there is a set of unobserved common securitization factors that explains the interrelationships among the securitization proxies. Our analysis identifies a single securitization factor. Eight out of eleven proxies measure this common factor significantly and reliably. The eight measures include some of the most widely used proxies in the literature. Our analysis provides a statistical rationale for their use as measures of securitization. 20 2. What Do Securitization Proxies Measure? 68 3. The Scale and Skill of Securitization

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Do Different Bank-Level Securitization Variables Measure The Same Thing? A Confirmatory Factor Analysis

van der Plaat,

Spierdijk

2024

De Economist

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The banking literature has used a wide range of securitization variables to measure banks’ securitization activities. This study analyzes to what extent different securitization variables measure the same dimensions of the securitization process. We consider large U.S. commercial banks during the 2011–2017 period and focus on eleven securitization variables that are available in the Call Reports and the HMDA LAR database. Confirmatory Factor Analysis (CFA) shows that eight out of eleven securitization variables share a single common securitization dimension. Two of the three remaining measures are excluded from the analysis in a specification search. The third remaining measure captures the common securitization factor to a lesser extent, resulting in relatively low correlations with the other variables. Each of the eight securitization variables is found to be a reliable measure of the underlying securitization factor according to the CFA. Our results provide a statistical rationale for using either of the eight variables as a measure of securitization. More generally, we recommend CFA to make a grounded choice among the available securitization measures.

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New insights into bank asset securitization: The impact of religiosity

Cited by 16 publications

References 115 publications

Earnings management and internal governance mechanisms: The role of religiosity

Earnings management and internal governance mechanisms: The role of religiosity

Securitization, loan sales and distance

Do Different Bank-Level Securitization Variables Measure The Same Thing? A Confirmatory Factor Analysis

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