The impact of bank competition and concentration on bank risk-taking behavior and stability: Evidence from GCC countries

Saif‐Alyousfi, Abdulazeez Y.H.; Saha, Asish; Md-Rus, Rohani

doi:10.1016/j.najef.2018.10.015

Cited by 76 publications

(146 citation statements)

References 62 publications

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“…We include several control variables in our analysis. We consider six bank-specific characteristics have influence bank performance (Saif-Alyousfi, 2019;Saif-Alyousfi et al, 2018c;Fu et al 2014;Chen and Liao, 2011). First, cost-income ratio: this is operating expenses divided by total income.…”

Section: Control Variablesmentioning

confidence: 99%

“…The hypothesis of structure-conduct-performance (SCP) indicates that banks in deeply concentrated markets collude and achieve monopoly profits; they tend to pay lower interest rates to depositors and charge higher interest rates on loans. In contrast, a higher concentration of banks may result in intense competition in the banking sector, which will lead to a negative relationship between market concentration and bank performance (Saif-Alyousfi et al, 2018c). Accordingly, the impact of market concentration on bank performance is unclear.…”

Section: Control Variablesmentioning

confidence: 99%

“…Data relating to bankspecific characteristics are collected from BankScope Fitch IBCA to create a sample consisting of an unbalanced panel of annual period series from 2000 to 2017, including the 2008-2009 financial turmoil. Following Saif-Alyousfi et al (2018c) and Saif-Alyousfi (2019) study of GCC banks, we focus only on banks listed on GCC stock exchanges. The sample in this study consists of 70 listed banks (45 conventional and 25 Islamic banks) in the six GCC economies: the UAE (20), Bahrain (13), Saudi Arabia (11), Kuwait (10), Oman (8), and Qatar (8).…”

Section: Datamentioning

confidence: 99%

See 2 more Smart Citations

Do oil and gas price shocks have an impact on bank performance?

Saif‐Alyousfi

Saha

Md-Rus

et al. 2021

Journal of Commodity Markets

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This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of record. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article. Please note that, during the production process, errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.

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Section: Control Variablesmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

See 1 more Smart Citation

Do oil and gas price shocks have an impact on bank performance?

Saif‐Alyousfi

Saha

Md-Rus

et al. 2021

Journal of Commodity Markets

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“…These Islamic banks constitute an important source of financial intermediation, controlling on average 24 percent of the region's banking system assets (Al- Hassan, Khamis, & Oulidi, 2010). However, the majority of the prior studies in GCC countries have not examined the effect of the financial leverage on the Islamic bank's performance (Poghosyan and Hesse, 2009;Mirzaei and Moore, 2016;Ashraf, Ramady, & Albinali, 2016;Saif-Alyousfi, 2019;Saif-alyousfi, Md-Rus, & Mohd, 2018;Saif-Alyousfi, Saha, & Md-Rus, 2017a, 2017b, 2018b, 2018c, 2018a. Hence, this study aims at filling this gap by examining the effect of the financial leverage on the performance of the Islamic banks' performance during the period from 2005 to 2017.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Financial Leverage on The Islamic Banks’s Performance in The Gulf Cooperation Council (GCC) Countries

Menacer

Saif‐Alyousfi

Ahmad

2019

IJFR

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This study examines the impact of the financial leverage on the Islamic banks’ performance in the GCC countries during the period from 2005-2017. The population of this study included the Islamic banks in the GCC countries. Thirteen years data of 25 listed Islamic banks in the GCC countries were used, wereby these data were retrieved from the Thomson Reuters DataStream. This study utilized the fixed effect regression model. The findings show that the financial leverage a has significant impact on the performance of the Islamic banks’ performance in the GCC region. More specifically, the financial leverage has a positive and significant impact on ROA, ROE, and Tobin’s Q of the Islamic banks in the GCC countries, thus indicating that the higher is the financial leverage the higher is the performance of the Islamic banks in the GCC region. However, the results of this study do not provide evidence to support the Agency Cost Theory that implies a decrease in the performance when equity ratio is increased. On the other hand, the findings provide evidence to support the Signaling Theory that argues that banks are expected to have a better performance credibly in transmitting this information through the higher capital. The findings imply that the level of financial leverage committed by the Islamic banks depends on their flexibility in adjusting their debt value and earning power.

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“…Information development makes business patterns begin to change. The power of globalization, financial innovation and progress information technology guide banks to follow aggressive business strategies to reinforce their bottom-line (Saif, 2018). What we are experiencing now is a dramatic shift from material sources to knowledge, from hardware to software.…”

Section: Introductionmentioning

confidence: 99%

The Value-Added Analysis of Intellectual Capital for Banking Financial Performance

Setyowati

Jamilah²

2019

AJEB

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This study was conducted to see how intellectual capital (IC) affects company performance (ROA)by entering the size variable in its calculations. This study also analyzes how much financial performancechanges occur as an effect of the efficiency of the use of capital employees (CEE), the efficiencyof using Structural Capital (SCE), and the partial efficiency of using Human Capital (HCE).Research was conducted on conventional banking in Indonesia for the period 2013 - 2017. Theresearch data was obtained from the official website of the Indonesia Stock Exchange (IDX). Thisstudy found that VAIC had a significant positive effect on ROA, and from the three IC components itturned out that the CEE component had the greatest influence on ROA

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The impact of bank competition and concentration on bank risk-taking behavior and stability: Evidence from GCC countries

Cited by 76 publications

References 62 publications

Do oil and gas price shocks have an impact on bank performance?

Do oil and gas price shocks have an impact on bank performance?

The Effect of Financial Leverage on The Islamic Banks’s Performance in The Gulf Cooperation Council (GCC) Countries

The Value-Added Analysis of Intellectual Capital for Banking Financial Performance

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