scholarly journals Z-Score Application for Jordanian Islamic Banks

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Yazan Qasim
Keyword(s):  
Diagnostic Technique ◽  
Bank Performance ◽  
Grey Zone ◽  
Islamic Banks ◽  
Z Score ◽  
Short Term ◽  
Islamic Bank ◽  
Score Model ◽  
Safe Zones

This research primarily aims to utilise the Altman model of Z-score to examine the trend performance and predict bankruptcy among three Islamic banks in Jordan for the period of 2010-2016. Furthermore, it also aims to introduce the Z-score model as a beneficial diagnostic technique for possible causes standing behind the bank performance crises. The results of the Z-score model showed that the Jordan Dubai Islamic Bank (JDIB), Jordan Islamic Bank for Finance and Investment (JIBFI), and International Islamic Arabic Banks (IIAB) recorded safe zones in the period of study except for JDIB and IIAB which recorded a Grey zone in 2010, 2011, and 2012 and 2010, 2011, 2012, and 2013, respectively. The implication of this research is important to policymakers, managers, and investors who can use the information to monitor the safest bank among these three Islamic banks in Jordan based on the priority for lending that has to be done in the order of JIBFI, JDIB, and then IIAB. On the other hand, the Z-score was found to be a valid model to examine performance, and ratios utilised in computing the Z-score which was considered to provide workable instrumental indicators as well as being adopted to finance short-term and long-term projects by Jordanian Islamic banks.

Determinants of Anthropometric Failure Among Tribal Children Younger than 5 Years of Age in Palghar, Maharashtra, India

2021 ◽  
Vol 42 (1) ◽  
pp. 55-64
Author(s):  
Angeline Jeyakumar ◽  
Swapnil Godbharle ◽  
Bibek Raj Giri
Keyword(s):  
Odds Ratio ◽  
Composite Index ◽  
Z Score ◽  
Short Term ◽  
Cross Sectional Survey ◽  
Crude Odds Ratio ◽  
Cross Sectional ◽  
Independent Variables ◽  
Child Undernutrition

Background: Measuring undernutrition using composite index of anthropometric failure (CIAF) and identifying its determinants in tribal regions is essential to recognize the true burden of undernutrition in these settings. Objective: To determine anthropometric failure and its determinants among tribal children younger than 5 years in Palghar, Maharashtra, India. Methods: A cross-sectional survey employing CIAF was performed in children <5 years to estimate undernutrition in the tribal district of Palghar in Maharashtra, India. Anthropometric measurements, maternal and child characteristics were recorded from 577 mother–child pairs in 9 villages. Results: As per Z score, prevalence of stunting, wasting, and underweight were 48%, 13%, and 43%, respectively. According to CIAF, 66% of children had at least one manifestation of undernutrition and 40% had more than one manifestation of undernutrition. Odds of anthropometric failure were 1.5 times higher among children of mothers who were illiterate (adjusted odds ratio [AOR] =1.57, 95% CI: 1.0-2.3), children who had birth weight >2.5 kg had lesser odds (AOR: 0.63, 95% CI: 0.4-0.9) of anthropometric failure, and children who had initiated early breastfeeding had 1.5 times higher odds of anthropometric failure (crude odds ratio: 1.5, 95% CI: 1.0-2.1). However, when adjusted for other independent variables, the results were not significant. Conclusion: The alarming proportion of anthropometric failure among tribal children calls for urgent short-term interventions to correct undernutrition and long-term interventions to improve maternal literacy and awareness to prevent and manage child undernutrition.

scholarly journals A STUDY ON FINANCIAL HEALTH OF SELECTED PUBLIC SECTOR MANUFACTURING COMPANIES OF INDIA : WITH REFERENCE TO Z-SCORE ANALYSIS

2021 ◽  
Vol 9 (08) ◽  
pp. 857-865
Author(s):  
Nidhi Sharma ◽  
◽  
Shivani Peppal ◽  
Keyword(s):  
Public Sector ◽  
Grey Zone ◽  
Manufacturing Companies ◽  
Financial Health ◽  
Z Score ◽  
Common Condition ◽  
Score Analysis ◽  
Score Model

Financial distressed from a decade has become a common condition for manufacturing companies of India. Many public sector manufacturing companies have also witnessing poor financial health. This study has examined the financial health of eighteen selected public sector manufacturing companies which are further divided into four sectors as Metal, Sugar, Paper and Textile. The examination of financial health of selected companies has been performed by calculating Altman Z-score model for four year prior to become distressed. And it has been found by the analysis that most of the company was in either distressed zone or in grey zone. The study also finds that Altman Z-Score Model is a perfect tool to examine the health of public sector manufacturing companies.

Ownership structure and financial performance in Islamic banks

2014 ◽  
Vol 7 (2) ◽  
pp. 146-160 ◽  
Author(s):  
Sarra Ben Slama Zouari ◽  
Neila Boulila Taktak
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Ownership Structure ◽  
Policy Implications ◽  
Bank Performance ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
The Impact

Purpose – This study aims to investigate empirically the relationship between ownership structure (concentration and mix) and Islamic bank performance, with a special attention to the identity of the block investor (foreign, family, institutional and state). Design/methodology/approach – Regression analyses are conducted to test the impact of the identity of the first shareholders and the degree of concentration on Islamic bank performance, using a panel data sample of 53 Islamic banks scattered over > 15 countries from 2005 to 2009. Findings – Results suggest that ownership is concentrated at 49 per cent, and for 41 banks from the full sample, the ultimate owner is institutional. State investors come in second place, followed by family ultimate shareholders. Using return on assets and return on equity as performance measures, empirical evidence highlights the absence of correlation between ownership concentration and Islamic bank performance. It also reveals that the combined effort of family and state investors is beneficial to bank performance. Results also indicate that banks with institutional and foreign shareholders do not perform better. Empirical findings suggest that the financial crisis impacts negatively Islamic bank performance. Research limitations/implications – The use of dummy variables to measure the nature of the largest owner represents the main limitation of this study. This is due to the lack of information, as the percentage of the largest capital held referring to owner category was available only for some banks. Practical implications – This research has given a brighter insight into corporate governance and bank performance in selected Islamic banking institutions. Findings provided useful information to bank managers, investors and policy makers. Financial performance can be improved by identifying practices associated with ownership structure. So, it will have policy implications for Islamic banks as to how to improve their performance. Finally, different types of bank ownership have had different concerns about implementing corporate governance practices among Islamic banks. Originality/value – This work is the first of its kind for Islamic banks. It extends previous research by examining whether ownership structure (concentration and mix) affects performance. It also fills the gap in the literature by providing empirical evidence on a large sample involving data from 15 countries. Finally, manual data collection on ownership structure constitutes a large part of the research for this paper.

scholarly journals The Factors Affecting Islamic Financing for Homeownership

2021 ◽  
pp. 48-54
Author(s):  
Neva Sunba Dena ◽  
◽  
Suhel Suhel ◽  
Imam Asngari ◽  
◽  
...  
Keyword(s):  
Household Income ◽  
Negative Impact ◽  
Least Square ◽  
Islamic Banks ◽  
Significant Positive Effect ◽  
Short Term ◽  
Ordinary Least Square ◽  
Study Results ◽  
Positive Effect

Indonesia has a significant and growing shortfall of housing. Existing supply is in poor condition and demand is rising for new units. Meanwhile, people's purchasing power to buy a house is still relatively low. Government overcomes added stock housing availability by collaborating with private developers to help meet the demand for housing needs. Islamic banks can provide funds to buy houses for the community. This study analyzes the effect of third-party fund (TPF), margin of homeownership financing (PPR), inflation, and household income on Islamic financing for homeownership. The analytical model used in this research is the ordinary least square with the Error Correction Model (ECM) method. The Ordinary Least Square (OLS) method in this study is used to see the relationship between the short-term and long-term effects of the independent variables on the dependent variable. The analytical tool used in this research is Econometric Views (EViews 10 Standard Edition for Windows). The study results show that in the short term, the TPF, PPR margin, inflation, and household income variables have a significant positive effect on homeownership financing in Islamic banks in Indonesia. The long term TPF, inflation, and household income variables have a significant positive effect on homeownership financing in Islamic banks in Indonesia, but the variable of PPR margin has a significant negative impact on sharia financing for homeownership.

scholarly journals Macro Variable Effect Analysis and Non-Performing Financing (NPF) Against the Return On Asset (ROA) Islamic Banks In Indonesia Year 2008-2017

2020 ◽  
Vol 3 (1) ◽  
pp. 32-47
Author(s):  
Fikri Ainul Qolbi ◽  
Dwi Pratika Karisma ◽  
Imron Rosyadi
Keyword(s):  
Interest Rates ◽  
Secondary Data ◽  
Islamic Banks ◽  
Analysis Model ◽  
Short Term ◽  
Return On Assets ◽  
Effect Analysis ◽  
Variable Effect ◽  
Macro Variables

Islamic Banks is a business entity that raises and distributes funds from the community and for the community. The study was conducted to analyze the macro variables and NPF (Non-Performing Finance) to ROA (Return on Assets) to determine the relationship between short-term and long-term between variables. The analysis model used is the Eagle Granger ECM Stage Two test that uses secondary data from the serial data (time series). The results of this study indicate that NPF simultaneously, GDP, and interest rates affect the ROA. Partially GDP positive and significant effects in the long term and short term, NPF positive and significant effect in the long term, interest rate, and no significant positive effect on ROA.

scholarly journals THE IMPACT OF IJARAH/LEASE FINANCING ON MALAYSIAN ISLAMIC BANK PERFORMANCE

2021 ◽  
Vol 16 (1) ◽  
pp. 49-58
Author(s):  
Mohamud Said Yusuf ◽  
Mohamad Yazid Isa
Keyword(s):  
Random Effect ◽  
Consumer Price Index ◽  
Operating Efficiency ◽  
Bank Performance ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Lease Contract ◽  
Banking Institutions ◽  
Asset Creation ◽  
The Impact

Ijarah (lease contract) is one of the essential financing contracts offered by Islamic banking institutions to meet the demand of the clients. This study investigates the impact of Ijarah financing on Islamic bank performance in Malaysia for the period from 2004-2018 using Fixed and Random Effect Models. Ijarah financing (IJFA) which becomes the focus variable of this study with other six independent variables; operating efficiency (EXTA), bank size (LTA), total financing (TFTA), base rate (BR), consumer price index (CPI) and gross domestic product (GDP) were regressed against return on asset (ROA) and net profit margin (NPM). The results show that Ijarah financing has a positive and significant impact on NPM. The findings suggest that Islamic banks should increase their portfolio of Ijarah financing and this is also support the concentration strategy used by banks in improving Islamic bank performances. An increase in demand for Ijarah financing will increase Islamic banks performance and this reflects that Ijarah financing as an asset creation tool that banks prefer particularly for generating income.

scholarly journals Islamic Money Market: An Instrument for Managing Liquidity Risk in Islamic Banks

ICR Journal ◽  
2014 ◽  
Vol 5 (2) ◽  
pp. 205-224
Author(s):  
Sekono Abiola Muttalib
Keyword(s):  
Risk Management ◽  
Liquidity Risk ◽  
Money Market ◽  
Islamic Banks ◽  
Financial Instruments ◽  
Short Term ◽  
Money Markets ◽  
Islamic Financial Institutions ◽  
Banking Institutions

The general consensus of financial experts is that liquidity is the lifeblood of any organisation, which is inclusive of Islamic banks. Hence, effective liquidity management is essential for the efficiency of banking institutions and the economy as a whole. The major provider of liquidity is the short-term money market instruments.  Islamic financial institutions just like their conventional counterparts use short-term mobilised deposit funds to finance long-term loans and projects which expose them to asset liability mismatches and thus, are vulnerable to liquidity problems. Addressing the potential liquidity risk due to the cash-flow mismatches requires an efficient and vibrant Islamic money market as it is an essential and integral part of Islamic financial system. It therefore raises the need for developing an Islamic money market where Shari’ah-compliant financial instruments are to be traded and operated based on Shari’ah principles. Although it is considered the surest approach to sound liquidity risk management in Islamic banks, the dilemma that Islamic money markets are facing now is acute shortage of Shari’ah-compliant financial instruments and the controversies surrounding the few available instruments. A successful liquidity risk management therefore requires ensuring well functioning Islamic money markets with some if not all controversies/addressed through embarking on development of new products or promoting innovation in order to enable Islamic banks to compete effectively with their conventional counterparts. Hence, this study attempts to present a better understanding of various Islamic money market instruments, their roles in managing liquidity and their relationship with liquidity risk management.

scholarly journals The Application of Altman’s Z-Score Model in Predicting Bankruptcy: Evidence from the Trading Sector in Sri Lanka

2015 ◽  
Vol 10 (12) ◽  
pp. 269 ◽  
Author(s):  
Aloy Niresh J. ◽  
Pratheepan T.
Keyword(s):  
Sri Lanka ◽  
Early Warning ◽  
Financial Distress ◽  
Safe Zone ◽  
Grey Zone ◽  
Z Score ◽  
Financial Reports ◽  
Financial Position ◽  
Score Model

Prediction of bankruptcy is crucial as the early warning may change entire complications and may avoid the high cost that is associated with distress. The main purpose of this study is to examine the likelihood of bankruptcy of the firms belonging to the Trading Sector in Sri Lanka. The research used data from the financial reports of seven trading companies for a period of the last five years from 2010 to 2014. Altman’s original (1968) bankruptcy model has been applied in order to classify the companies in various levels of financial position namely safe, grey and distress. Findings reveal that 71% of the companies belonging to the Trading Sector were in financial distress and the rest of whole 29% were in the grey zone. The fact that none of the companies lie under the safe zone highlights that as a whole the sector is in a menace.

scholarly journals Spirometric classifications of COPD severity as predictive markers for clinical outcomes: the HUNT Study

2020 ◽  
Author(s):  
Laxmi Bhatta ◽  
Linda Leivseth ◽  
Xiao-Mei Mai ◽  
Anne Hildur Henriksen ◽  
David Carslake ◽  
...  
Keyword(s):  
Clinical Outcomes ◽  
Continuous Variable ◽  
Z Score ◽  
Uk Biobank ◽  
Short Term ◽  
Term Survival ◽  
Respiratory Mortality ◽  
Hunt Study

ABSTRACTRationaleGOLD grades based on percent-predicted FEV1 poorly predicts mortality. Studies have recommended alternative expressions of FEV1 for the classification of COPD severity and they warrant investigation.ObjectiveTo compare the predictive abilities of ppFEV1 (ppFEV1 quartiles, GOLD grades, ATS/ERS grades), FEV1 z-score (FEV1 z-score quartiles, FEV1 z-score grades), FEV1.Ht-2 (FEV1.Ht-2 quartiles, FEV1.Ht-2 grades), FEV1.Ht-3 (FEV1.Ht-3 quartiles), and FEV1Q (FEV1Q quartiles) to predict clinical outcomes.MethodsPeople aged ≥40 years with COPD (n=890) who participated in the HUNT Study (1995-1997) were followed for 5 years (short-term) and up to 20.4 years (long-term). Survival analysis and time-dependent area under curve (AUC) were used to compare the predictive abilities. A regression tree approach was applied to obtain optimal cut-offs of different expressions of FEV1. The UK Biobank (n=6495) was used as a replication cohort with a 5-year follow-up.ResultsAs a continuous variable, FEV1Q had the highest AUCs for all-cause mortality (short-term 70.2, long-term 68.3), respiratory mortality (short-term 68.4, long-term 67.7), cardiovascular mortality (short-term 63.1, long-term 62.3), COPD hospitalization (short-term 71.3, long-term 70.9), and pneumonia hospitalization (short-term 67.8, long-term 66.6), followed by FEV1.Ht-2 or FEV1.Ht-3. Generally, similar results were observed for FEV1Q quartiles. The optimal cut-offs of FEV1Q had higher AUCs compared to GOLD grades for predicting short-term and long-term clinical outcomes. Similar results were found in UK Biobank.ConclusionsFEV1Q best predicted the clinical outcomes and could improve the classification of COPD severity.

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