scholarly journals Cash Flows and Earnings for Share in Islamic Banks: Jordanian Evidence

2020 ◽  
Vol 15 (12) ◽  
pp. 15
Author(s):  
Bader M. Alsharif ◽  
Talal M. Bataineh ◽  
Khaled M. Abo Aliqah
Keyword(s):  
Positive Relationship ◽  
Annual Report ◽  
Negative Relationship ◽  
Cash Flows ◽  
Islamic Banks ◽  
Short Term ◽  
Islamic Bank ◽  
Long Run ◽  
Net Profit ◽  
Report Data

This study provides evidence on the effect of cash flows extracted from operating, investing, and financing activities attributed to the net profit, total assets or liabilities on the return per share for Jordan Islamic Bank, International Islamic Arab Bank, and Al-Rajhi Islamic Bank. The methodology is based on panel regression analyses of annual report data for Jordan listed Islamic Banks for the year from 2005 to 2019. The return on a stock plays an important role in investing and financing operations. Thus, the cash flows are weak in the short term and quickly increase in the long run. Results show a negative relationship between cash flow and return on a stock, except for cash flows from operating activities, which have a positive relationship with the return on a stock in the second and third models. The reason for this positive relationship is either the increase in operations from untapped money does not increase the size of assets or liabilities or the decrease in operations leads to an increase in profits and thus an increase in the return on the stock. This association indicates moderation in maintaining the amount of cash. Any risk facing the bank from withdrawals or financing operations is covered without affecting the size of the bank’s profits until the turnout by investors increases and the profit increases.

scholarly journals Assessing satisfaction among Islamic Bank Customers’ in Bangladesh

2018 ◽  
Vol 10 (3) ◽  
pp. 1377-1405
Author(s):  
Kashrima Nawreen ◽  
Suhaily Shahimi
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Significant Relationship ◽  
Islamic Banks ◽  
Contrast Level ◽  
Significant Percentage ◽  
Independent Variables ◽  
Islamic Bank ◽  
Long Run ◽  
Conventional Banks

This study is conducted to assess the level of customer satisfaction in Islamic banks from the context of Bangladesh.  In the process, 300 questionnaires were distributed, and 236 were returned completed.  The results of the questionnaire analysis reveal that there is significant relationship between three of the independent variables, namely- tangible products, personnel service quality and level of commitment to customer satisfaction.  In contrast, level of compassion does not have a significant relationship with customer satisfaction.  The analyses further reveal that the respondents were satisfied with the overall Islamic Banks’ infrastructure operating in Bangladesh, and most of the respondents did not have intentions to switch to the conventional counterparts.  However, the main reason for the account holders to switch to Islamic banks is because they wanted to deal with Shahriah compliant banking.  The analyses also indicate that a significant percentage of the respondents have accounts with both Islamic banks and conventional banks.  The study has suggested that Islamic Banks should enhance Shahriah compliant framework to generate more income, experience speedy growth, and remain sustainable in the long run. 

scholarly journals Analisis Pengungkapan Standar Akuntansi Syariah Aaoifi Pada Bank Syariah Di Indonesia Dan Malaysia Periode Tahun 2017-2018

2019 ◽  
Vol 1 (3) ◽  
pp. 1604-1616
Author(s):  
Fajar Yufrikal Azlan1 ◽  
Vanica Serly
Keyword(s):  
Data Collection ◽  
Commercial Banks ◽  
Annual Report ◽  
Accounting Standards ◽  
Descriptive Statistics ◽  
Islamic Banks ◽  
Study Analysis ◽  
Collection Method ◽  
Data Collection Method ◽  
Islamic Bank

This study aims to examine the compliance of AAOIFI sharia accounting standards disclosures in Islamic Banks in Indonesia and Malaysia in 2017 and 2018. This study measures compliance by looking at three Islamic banks' products in Islamic, mudaraba, and musharaka. Data was collected from the annual report of 12 Islamic commercial banks in Indonesia and 15 Islamic commercial banks in Malaysia for 2017 and 2018. The data collection method in this study is the documentation study. Analysis of the data used is descriptive statistics. This study found that the disclosure of Islamic banks related to murabahah, mudharabah and musyarakah is still relatively low. There was no difference in compliance levels between the two countries during the periods of 2107 and 2018. Among the three Islamic bank products, murabaha has the highest mean. In addition, Islamic banks in Indonesia as a whole have a higher level of disclosure than Islamic banks in Malaysia.

scholarly journals Profit Islamic Bank from Mudharabah and Musharakah Finance with Islamic Social Responsibility Disclosure

2021 ◽  
Vol 10 (3) ◽  
pp. 84-91
Author(s):  
Yusuf Faisal ◽  
Nirdukita Ratnawati ◽  
Egi Gumala Sari
Keyword(s):  
Social Responsibility ◽  
Financial Services ◽  
Commercial Banks ◽  
Annual Reports ◽  
Islamic Banks ◽  
Test Results ◽  
Islamic Bank ◽  
Net Profit ◽  
Negative Effect ◽  
Rate Of Profit

This research was conducted to determine the effect of mudharabah and musharakah financing on net profit of Islamic commercial banks in Indonesia. This study uses the annual financial statements of Islamic commercial banks obtained from the Financial Services Authority and annual reports on the website of Islamic commercial banks for the period 2010-2019. The test results found that mudharabah financing had a significant effect on the net profit of Islamic banks, this also strengthened Islamic social responsibility of Islamic commercial banks. But unlike mudharabah financing, musharakah financing actually has a negative effect on the net profit of Islamic commercial banks, which means that the higher the Islamic bank distributes musharakah financing, the rate of profit will decrease which results in the weakening of Islamic social responsibility disclosure. It is recommended that Islamic banks exercise greater caution when selecting consumers for mudharabah financing, as this type of financing carries a higher risk but also a higher profit share if the financing is successful. This research has a limitation in that it focuses exclusively on Islamic commercial banks in Indonesia, although additional research might be conducted by sampling Sharia Business Unit and Sharia Rural Bank.

scholarly journals Socio-Economic Determinants of Employment: A Case study of Pakistan

2019 ◽  
Vol 5 (1) ◽  
pp. 71-82
Author(s):  
Muhammad Atif Adeem ◽  
Muhammad Sibt-e-Ali ◽  
Raheel Akhtar
Keyword(s):  
Positive Relationship ◽  
Negative Relationship ◽  
Political Stability ◽  
Positive Relation ◽  
Economic Determinants ◽  
Long Run ◽  
Short Period ◽  
Short Run ◽  
Time Periods ◽  
High Level

This research is the foremost determination to investigate the long and short run affiliation amongst the variables of employment. For this purpose we use ARDL bound tests. The data from the period of 1972 to 2016 has been used in this research. These results indicate that employment has statistically significant and positive relationship between the variables of employment. Orders of integration of variables used in this analysis are I (O) and I (1). The results of this study show that per capita of GDP and expenditures of government have significant positive relationship with the employment in both time periods, the short and long run. Thenoteworthyempirical relationship is found in long run between GFCF, while in short period of time it shows destructive relation with employment. While FDI shows a high level of significant and positive relation both in long run and short run. Secondary school enrolment has significant and positive relation with employment in both time periods the long and short run time period. The relationship of money supply with employment in long run is positive while in short run it shows significant but negative relation with employment. Trade and political stability both are the main factors to estimate the strength of an economy. According to this study trade and political stability shows significant and positive relation with employment in long run while in short run both shows negative relationship with employment.

scholarly journals Public Investment in Infrastructure and Economic Growth in Nigeria (1980-2020)

2021 ◽  
Vol 4 (3) ◽  
pp. 1-22
Author(s):  
Enya F.O. ◽  
Ezeali B.O.
Keyword(s):  
Economic Growth ◽  
Positive Relationship ◽  
Public Investment ◽  
Negative Relationship ◽  
Econometric Analysis ◽  
Long Run ◽  
Integration Test ◽  
Stationarity Test

The paper examined Public Investment in Infrastructure and the Economic Growth of Nigeria.The study adopted Econometric analysis using E-View.The stationarity test carried out in the study showed that all the variables were all stationary at first difference,1(1) and because of this the reserachers proceeded to determine evidence of co-integration among the variables,hence the result of the co-integration test shows that there is an evidence of 2 co-integration equations which shows that there is a long run relationship among the variables.The ECM test was well signed having -0.019307 with a good Adjusted Coeffiient of determination of 92.78% with a joint statistical probabibility of 0.00000.The study had it that Public Investment in Technology,Educational infrastruture and Power all have positive relationship with the Economy wheras Transport has negative relationship with the Economy.The study went further to conclude that Public Investment plays important roles in stimulation the Nigerian Economy especially in this era of democracy.

Profit- and loss-sharing impact on Islamic bank liquidity in GCC countries

2020 ◽  
Vol 11 (9) ◽  
pp. 1791-1806
Author(s):  
Khoutem Ben Jedidia
Keyword(s):  
Liquidity Risk ◽  
Profit Sharing ◽  
Capital Adequacy ◽  
Empirical Literature ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Gcc Countries ◽  
Long Run ◽  
The Impact

Purpose The purpose of this paper is to empirically assess the impact of the principle of profit- and loss-sharing (PLS) on the exposure to liquidity risk of Islamic banks in Gulf Corporation Council (GCC) countries. The Islamic bank activity is distinguished by a PLS principle, which is likely to involve specificities in the bank liquidity issue. Design/methodology/approach This paper investigates the determinants of Islamic bank liquidity over the period 2005–2016 using a panel of 23 Islamic banks in GCC. The system of generalized method of moment estimators is applied. Findings The findings reveal that while profit-sharing investment accounts (PSIAs) are inversely proportional to Islamic bank liquidity, the PLS investment does not seem to act as a determinant of the bank liquidity. The fact that PSIAs are globally short-run accounts, but finance long-run projects leads to a substantial maturity mismatches, which limits the availability of liquidity buffer and exacerbates the bank’s exposure to liquidity risk. Moreover, capital adequacy ratio has significant and positive association with bank liquidity, as a strong capital ratio helps to strengthen the liquidity control. However, return on assets has a negative significant impact on bank liquidity. For instance, if the bank holds more cash, it deprives itself from placing funds and earning returns, which causes its profitability to decline. Practical implications This paper gives further insights to better improve the liquidity risk management in a context of scarcity of Shariah-compliant instruments. Islamic bank needs to determine the PLS purpose and goals to be consistent with the “bank’s financing policy” and convince its depositors to use their deposits for medium and long-run investments. Originality/value Unlike previous empirical research, this investigation tries to better grasp the Islamic bank liquidity issue by focusing on the PLS impact on liquidity risk. It aims to fill in the gap in the empirical literature on this topic.

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.

scholarly journals PENGARUH KEKUATAN PASAR TERHADAP KECUKUPAN MODAL PADA BANK KONVENSIONAL DAN SYARIAH DI INDONESIA

2019 ◽  
Vol 1 (1) ◽  
pp. 111
Author(s):  
Yussi Ananda ◽  
Hasdi Aimon ◽  
Dewi Zaini Putri
Keyword(s):  
Market Power ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Short Term ◽  
Correction Model ◽  
Long Run ◽  
Banking Market ◽  
Short And Long Term ◽  
Conventional Banks

This study aims to find out how the Influence of Market Power on Capital Adequacy in Conventional and Islamic Banks in Indonesia in the long and short term. The data used are secondary data in the form of time series from 2006: Q1 to 2016: Q4, with documentation data collection techniques and library studies obtained from relevant institutions and agencies. The variables used are Market Power, Deposits, Capital, Inflation and Economic Growth. The research methods used are: (1) Error Correction Model (ECM) Analysis, (2) Classical Assumption Test. The results of the study show that (1) Short-term paths of Conventional Bank Market Power are higher than Islamic banks. This means that in the short term the Konvensionsal Bank dominates the banking market in Indonesia. While in the long run Market Power in Islamic Banks is higher than Conventional Banks. So Islamic banks in the long run dominate the banking market in Indonesia. (2) In the short term and long term deposits at Conventional Banks are higher compared to Islamic Banks. So conventional banks in the short and long term can collect more banking funds in Indonesia. (3) In the short and long term capital in Islamic banks is higher than conventional banks. So Islamic banks in the short and long term dominate banking capital in Indonesia. (4) In the short and long term, inflation in conventional banks is higher compared to Islamic banks. So it can be said that conventional banks in the short and long term are influenced by inflationary shocks in Indonesia. (5) In the short-term and long-term economic growth in Islamic banks is higher than conventional banks. So it can be said that Islamic banks in the short and long term are influenced by the high and low level of Indonesia's economic growth.Keywords: Market Power, Capital Adequacy, Conventional and IslamicBanks, and Error Correction Model (ECM).

scholarly journals Analisis Profitabilitas Dari Pembiayaan Mudharabah, Musyarakah, Dan Murabahah Pada Bank Umum Syariah Di Indonesia Periode 2005-2010

2016 ◽  
Vol 12 (1) ◽  
pp. 1
Author(s):  
Aditya Satriawan ◽  
Zainul Arifin
Keyword(s):  
Financial Services ◽  
Profit Margin ◽  
Islamic Banks ◽  
Banking Services ◽  
Return On Equity ◽  
The Public ◽  
Islamic Bank ◽  
Operating Profit ◽  
Net Profit ◽  
Simple Regression Analysis

<p>Bank is a business entity that collects funds from the public in the form of savings and channel them to the public in the form of loans or other forms in order to improve the living standards of people. Islamic banking services related to financial services offered by Islamic banks in the packed products that exist in the Islamic bank, one that characterizes the Islamic bank is based financing for the results of mudaraba and musharaka there is also financing by way of sale and purchase or called murabaha. This study aims to determine the effect mudharabah, musyaraka and murabahah to the profitability of Islamic banks in Indonesia as well as which of the three financing is a significant influence on the profitability of Islamic banks in Indonesia. This research uses the object of Islamic banks namely Bank Syariah Mandiri, Bank Mega Syariah, Bank<br />Muamalat Indonesia and in the period 2005-2010 the realization of financing (murabahah, musyarakah and mudarabah) using a quantitative method with simple regression analysis that will get the parameters of the effect of changing a variable against other variables, which will then get a conclusion. The study reveals that Return on Equity (ROE), Operating Profit Margin (OPM), and Net Profit Margin (NPM) are significantly affected by mudharabah; and Gross Profit Margin (GPM) is significantly affected by the Musharaka.<br />Keywords: Mudharabah, Musyarakah, Murabahah, ROE, OPM, NPM, GPM</p>

scholarly journals BOARD SIZE AND CORPORATE PERFORMANCE OF QUOTED COMMERCIAL BANKS IN NIGERIA

2019 ◽  
Vol 7 (1) ◽  
pp. 328-341
Author(s):  
Otuedon Ajuyitse Martins ◽  
Ogbole Philip Osemudiamen
Keyword(s):  
Commercial Banks ◽  
Positive Relationship ◽  
Corporate Performance ◽  
Negative Relationship ◽  
Net Income ◽  
Board Size ◽  
Standard Size ◽  
Secondary Sources ◽  
Net Profit ◽  
The Relationship

The study examines board size and corporate performance of quoted companies in Nigeria. The objectives of the study are to examine the relationship between board size and total asset of quoted Nigerian banks; to examine the relationship between board size and total revenue of quoted Nigerian banks; to examine the relationship between board size and net profit of quoted Nigerian banks. The study adopted panel research design and census survey approach. The population of this research consists of 21 commercial banks in Nigeria. Data were collected from secondary sources that is audited financial statements. The findings of the study showed that there is a negative relationship between board size and total assets; there is a positive relationship between board size and gross revenue; there is a positive relationship between board size and Net profit. From the above findings, the study concluded that there is a relationship exist between board size and corporate performance of quoted Nigerian banks. The study further recommend that commercial banks and quoted firms must ensure that a proper board of directors is composed in other to institute standards and controls that will boost the net income of the firm; regulatory bodies should ensure that firms constitute a board with a standard size of seven members. The board also must have professionals who have requisite knowledge in the business; firm’s board must ensure that the committees in the board are most effective in safeguarding the asset of the organization and should continuously make decisions that will boost the revenue and net profit of the firm.

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