scholarly journals Measuring the Performance of Jordanian Islamic Banks

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Yazan Radwan Qasim ◽  
Yazis Mohamad ◽  
Norhazlina Ibrahim
Keyword(s):  
Economic Growth ◽  
Performance Measurement ◽  
Financial Performance ◽  
Banking Sector ◽  
Driving Forces ◽  
Secondary Data ◽  
Measurement Methods ◽  
Measurement Tool ◽  
Islamic Banks ◽  
Performance Measurements

The banking sector is believed to be one of the driving forces of economic growth of many countries. Muslim jurists have realized the need to get the benefit of banking activities that adopts a lawful way with Islamic rule. Jordanian Islamic banks suffer from measure the financial performance using effective measurement tool based on various indicators. The main aim of this research is to analysis and ranks the performance levels of the Jordanian Islamic banks using suitable measurement methods. This study utilizes secondary data to measures the performance of three Jordanian Islamic banks (JIBFI, IIAB, and JDIB) over the period 2010-2013 by integrated tools; FRA, DEA, and MI. The significant results indicate that JDIB recorded the best performance rank based the three measurements tools, followed IIAB, and lowest rank is JIBFI. The contribution of this study is performance measurements of Jordanian Islamic banks based on the combination of FRA, DEA, and MI rather than utilize one measurement tool.Keywords: Jordanian Islamic banks, performance measurement, FRA, DEA, MI.

scholarly journals An Investigation of the Performance of Islamic and Interest Based Banking Evidence from Pakistan

2018 ◽  
Vol 9 (1) ◽  
pp. 81-112 ◽  
Author(s):  
Tauseef Khan ◽  
Waqar Ahmad ◽  
Muhammad Khalil Ur Rahman ◽  
Fazal Haleem
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Secondary Data ◽  
Primary Data ◽  
Islamic Banks ◽  
Risk Capital ◽  
Secondary Sources ◽  
Islamic Bank ◽  
Significant Difference ◽  
Conventional Banks

Abstract The main difference between Islamic and conventional banking is that Islamic banking works on profit and loss while conventional banking work is interest based. The aim of this research study is to measure and compare the financial performance of Islamic and conventional banking in Pakistan during 2006 to 2015. This study is to examine and to evaluate the performance of 5 Islamic banks (Meezan Islamic Bank, Bank Islami Limited, Al Baraka Islamic Bank, Dubai Islamic Bank Limited and Burj Bank Limited) and 5 conventional banks (Muslim Commercial Bank Limited, United Bank Limited, Askari Bank Limited, Allied Bank Limited, Habib Bank Limited) in terms of profitability, liquidity, risk, capital and efficiency. We used quantitative and qualitative data for comparison of Islamic and conventional banks. Collection of data consists on both primary as well as secondary sources. Primary data has been gathered from interviews and Secondary data has been gathered from the balance sheets and income statements of the sampled banks for the period of 2006 to 2015.Financial ratios such as profitability ratios, liquidity ratios, solvency ratios, capital ratios and efficiency ratios are used for measure of the financial performance of both banking sector. The results indicate that Islamic banks are less profitable, more liquid, less risky and less efficient. There is no significant difference in terms of capital between Islamic and conventional banks.

THE EFFECT OF THE SHARIA SUPERVISORY BOARD AND THE BOARD OF COMMISSIONERS ON THE FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 60-73
Author(s):  
Ahmad Fauzul Hakim Hasibuan ◽  
Fuadi Fuadi ◽  
Angga Syahputra
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Supervisory Board ◽  
Secondary Data ◽  
Sampling Technique ◽  
Islamic Banks ◽  
Purposive Sampling ◽  
Islamic Bank

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank

scholarly journals Analisis Kinerja Keuangan Bank Umum Syariah di Indonesia berdasarkan Islamicity Performance Index Periode 2015-2019

2021 ◽  
Vol 3 (2) ◽  
pp. 230-253
Author(s):  
Fakhry Hafiyyan Kurniawan ◽  
A. Jajang W. Mahri ◽  
Rumaisah Azizah Al Adawiyah
Keyword(s):  
Performance Measurement ◽  
Performance Index ◽  
Descriptive Analysis ◽  
Profit Sharing ◽  
Commercial Banking ◽  
Performance Ratio ◽  
Measurement Tool ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Average Value

Islamic Commercial Banking in Indonesia generally has not fully carry out business activities in accordance with sharia provisions. Therefore, there is a need for a performance measurement tool that is able to express spiritual and social values embodied in Islamic banks. The purpose of this study is to describe the performance of Islamic banking based on Islamicity Performance Index. This research is a quantitative research using descriptive analysis. The data used in this research is secondary data. The study population was Islamic banks in Indonesia during the period 2015-2019, with a sample of twelve banks. Sampling was done by using purposive sampling method. The results showed Panin Dubai Sharia Bank was the best bank in the Profit Sharing Ratio (PSR) indicator. The value of Zakat Performance Ratio (ZPR) in Islamic banking in Indonesia is still low. BNI Sharia is the bank with the highest average value for the ZPR indicator. Equitable Distribution Ratio (EDR) indicates that Mandiri Sharia Bank has the highest average value. Directors-Employees Welfare Ratio (DEWR) shows that BTPN Sharia have fairly high levels of disparity between directors and employees. IIR and IsIR shows  that in general Islamic commercial banks in Indonesia have carried out businesss performance in the halal sector. Meanwhile, overall, it received a satisfactory predicate. This research is expected to be taken into consideration for the related institutions to apply the performance measurement of Islamic Commercial Banking in accordance with the concept of Islamicity Performance Index, and be taken into consideration in taking policy measures in accordance with the concept of sharia that will be used in the future.  

scholarly journals Effects of Infrastructure Development, Inflation and Economic Growth to Performance Company (ROA, Tobin's Q, PBV): Study on Registered Infrastructure Support Companies in IDX Period 2014-2019

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Eko Sarjono ◽  
◽  
Kartika Hendra Titisari ◽  
Supawi Pawenang
Keyword(s):  
Economic Growth ◽  
Performance Measurement ◽  
Financial Performance ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Linear Regression Analysis ◽  
Infrastructure Development ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
The Impact

The financial performance can be used as a benchmark of the ability of an organization or company in achieving its goals. Performance measurement is one of the most important factors for an organization or company, performance measurement is a process of measuring the extent to which a company does work to achieve its goals. The research investigated the impact of infrastructure, economic growth and inflation on financial performance of infrastructure support companies listed in Indonesian Stock Exchange Period 2014-2019 which is proxied by ROA (Return on Assets), Tobin’s Q and PBV (Price to Book Value). The population of this research was the infrastructure support companies listed on the Indonesian Stock Exchange period 2014-2019. Research sampling was conducted using The Purposive Sampling Method. The data analysis was camed out using classical assumption test, multiple linear regression analysis, t-test, F-test and determinan (R2) test with SPSS 21. The research finding showed that the model has an effect on the financial performance as proxied by ROA. So the results of the hypothesis test show that: (1) Infrastructure development has a negative and significant effect on ROA. (2) The inflation rate has a positive and significant effect on ROA. (3) Economic growth has no significant effect on ROA. Meanwhile, the model has no effect on financial performance which is proxied in Tobin's Q and PBV.

scholarly journals IMPACT OF INFORMATION TECHNOLOGY INVESTMENT TO FINANCIAL PERFORMANCE ON BANKING SECTOR

2018 ◽  
Vol 2 (1) ◽  
pp. 41-46
Author(s):  
Hendra Gunawan ◽  
Serlyna Serlyna
Keyword(s):  
Information Technology ◽  
Financial Performance ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sample Population ◽  
Manufacturing Companies ◽  
Financial Investment ◽  
Impact Of Technology ◽  
The Impact

This study examines the impact of technology on the performance of financial investment in banking companies listed in Indonesia Stock Exchange to prove its influence on the development of the banking company's financial performance. The data used in this research is secondary data uses financial statements that have been audited. Data analysis technique used is simple regression analysis. Results showed that between investments in information technology affect the company's financial performance. The results of this study illustrate that the company's financial performance would be if the investment in information technology in the company are used effectively and efficiently. This research is important for companies and organizations, in order to better the use or utilization of information technology in the enterprise. The company is only limited to the banking companies listed in Indonesia Stock Exchange, then further research is recommended to add criteria and indicator others that have not been addressed in this study, in addition to subsequent authors can also extend the sample population to another company with a different field such as manufacturing companies.

scholarly journals PENGARUH PENGUNGKAPAN IDENTITAS ETIS ISLAM, AGENCY COST DAN INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN (STUDI PADA BANK UMUM SYARIAH YANG TERDAFTAR DI OTORITAS JASA KEUANGAN PERIODE 2016-2018)

2021 ◽  
Vol 9 (1) ◽  
pp. 57
Author(s):  
Mursidah Mursidah ◽  
Yunina Yunina ◽  
Meutia Zahara
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Annual Report ◽  
Secondary Data ◽  
Agency Cost ◽  
Islamic Banks ◽  
Ethical Identity ◽  
Identity Disclosure

Abstract: This study aimed to examine the influence of the Islamic ethical indentity disclosure, agency cost, and intellectual capital to the financial performance proxied by return on asset (ROA) in Islamic commercial bank in 2016-2018. Secondary data were used from annual report were published on the website etch Islamic bank between 2016-2018. The purposive sampling method using in this research, so there are theerten Islamic banks are object of research. The analytical method used is multiple linier regresstion analysis using the SPSS 20 softwer program. The results of this study shows that partial of the Islamic ethical identity disclosure have not effect on the financial performance proxied by return on asset (ROA) in Islamic commercial bank, the agency cost have effect negative on the financial performance proxied by return on asset (ROA) in Islamic commercial bank, and intellectual capital have effect positif on the financial performance proxied by return on asset (ROA) in Islamic commercial bank in 2016-2018. Keywords: Islamic ethical identity disclosure, agency cost intellectual capital, financial performance and  ROA.

scholarly journals Financial Performance Mediation in the Influence of Islamic Corporate Governance Disclosure on the Islamic Social Reporting

2019 ◽  
Vol 3 (1) ◽  
pp. 75
Author(s):  
Ichsan Setiyo Budi ◽  
Rahmawati Rahmawati ◽  
Falikhatun Falikhatun ◽  
Muthmainah Muthmainah ◽  
Ardi Gunardi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Social Role ◽  
Secondary Data ◽  
Social Reporting ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Social ◽  
Annual Reporting ◽  
Report Data

The results of the research on the social role of Islamic banks show inconsistency both domestically and abroad; this is the basis for conducting this research to re-explain the Islamic Corporate Governance (ICG) and Islamic Social Reporting (ISR) relationship, models. This study aims to examine the indirect effect of ICG disclosure on ISR disclosure with financial performance as a mediating variable in Islamic Banking in Indonesia. This study uses secondary data with annual report data sources and financial statements on Islamic banking in Indonesia. They are testing this study using stepwise regression analysis with data for the annual reporting period of 2011 through 2014. The result that financial performance mediates the effect of disclosure of ICG on ISR; this shows that proper management of Islamic banks will produce high financial performance so that they can carry out their social roles well too. The contribution of this study is to develop a new model of the part of financial performance mediating the effect of ICG disclosure on ISR so that it is beneficial for the development of science.

scholarly journals Impact of Environmental Performance on Financial Performance: Empirical Evidence from Indian Banking Sector

2021 ◽  
Vol 12 (1) ◽  
pp. 13-24
Author(s):  
Parul Munjal ◽  
P. Malarvizhi
Keyword(s):  
Financial Performance ◽  
Empirical Evidence ◽  
Significant Relationship ◽  
Environmental Performance ◽  
Banking Sector ◽  
Secondary Data ◽  
Capital Intensity ◽  
Environmental Disclosure ◽  
Policy Makers ◽  
Environmental Practices

There has been long-standing debate over whether or not firms gain economic competiveness from reducing their impact on the environment. Although ample literature is available on association between environmental performance and financial performance across various sectors, little empirical evidence is available in context of Indian banking sector. This research aims to analyze whether there is any significant relationship between environmental performance and financial performance of banks operating in India for a period 2013-14 to 2017-18. Secondary data has been collected for a sample of 83 banks operating in India. Content analysis was applied to extract information about environmental performance disclosed by sample banks followedby construction of environmental disclosure score index. Hierarchical multiple regression was applied to analyze relationship between environmental performance and financial performance after controlling for effects of size, financial leverage and capital intensity. Results exhibit no significant relationship between environmental performance and financial performance of banks operating in India. Findings of this research are expected to provide insight to users and readers of financial statements to have better understanding about the environmental practices carried out by banks. It would also contribute significantly towards decision making for policy makers in Indian banking sector to establish mandatory environmental legislations for reporting on environmental practices in order to improve non financial disclosure and financial performance in Indian banking sector.

scholarly journals The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya

2017 ◽  
Vol 8 (4) ◽  
pp. 167 ◽  
Author(s):  
Gift Kimonge Dzombo ◽  
James M. Kilika ◽  
James Maingi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Exploratory Research ◽  
Electronic Banking ◽  
Economic Activities ◽  
Significance Level ◽  
Negative Effect ◽  
The Individual

The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.

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