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Does equity-based financing improve the performance of banking institutions: a case of Islamic banks?

Shahari, Farihana and Rahman, Md. Saifur (2019) Does equity-based financing improve the performance of banking institutions: a case of Islamic banks? In: 19th Kuala Lumpur International Business, Economics and Law Conference, 24 - 25 Aug 2019, Bangi, Selangor.

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Abstract

This paper explores the possible implications of PLS theory and examines whether the PLS financing instrument can increase the profitability of global Islamic banks. PLS financing instrument is the focus variable, while bank-specific and macroeconomic variables are considered as the controlled variable to draw a reliable and unbiased result. The study undertakes several hypotheses and employs a two-step system GMM estimation technique. The results offer several outcomes; the PLS financing instrument improves the profitability of Islamic banks. The bank-specific and macroeconomic variables have a mixed effect on profitability. The study suggests policy implications to the Islamic banks for sustaining in the competitive banking industries.

Item Type: Conference or Workshop Item (Plenary Papers)
Additional Information: 7791/75148
Uncontrolled Keywords: Islamic Banks, PLS financing instrument, Profitability, System GMM
Subjects: H Social Sciences > HG Finance > HG1501 Banking
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences
Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User: Farihana Shahari
Date Deposited: 03 Jun 2020 09:24
Last Modified: 13 Jul 2020 09:47
URI: http://irep.iium.edu.my/id/eprint/75148

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