The effects of formal institutions and national culture on equity-based financing in Islamic banks

IF 4.8 2区 经济学 Q1 BUSINESS, FINANCE
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Abstract

This study investigates the effects of formal institutions and national culture on equity-based financing across different countries. The sample is taken from 60 Islamic banks from 10 Middle East, South Asia and Southeast Asia countries between 2011 and 2019. Using generalized least squares (GLS) regression and two-way system Generalized Method of Moment (GMM) as a robustness check, we consistently find a positive and significant effect of formal institutions on equity-based financing. This finding indicates that the good quality of formal institutions plays an important role in promoting equity-based financing. In addition, we find that culture is important and even a key determinant of equity-based financing. Power distance has a more powerful impact than other cultural values, indicating that social trust greatly influences Islamic bankers' decisions to channel this particular financing. The link between formal institutions and equity-based financing is weaker in countries with cultural values that are more individualistic (less collectivist) and more uncertainty-avoidant. These findings suggest the necessity of enhancing the quality of formal institutions and taking culture into consideration when formulating policies to increase financing in accordance with the principles of Islam.

正规机构和民族文化对伊斯兰银行股权融资的影响
本研究调查了正规机构和国家文化对不同国家股权融资的影响。样本选自 2011 年至 2019 年间 10 个中东、南亚和东南亚国家的 60 家伊斯兰银行。利用广义最小二乘法(GLS)回归和双向系统广义矩法(GMM)作为稳健性检验,我们一致发现正规机构对股权融资有积极而显著的影响。这一结果表明,优质的正规机构在促进股权融资方面发挥着重要作用。此外,我们还发现文化也很重要,甚至是股权融资的关键决定因素。与其他文化价值观相比,权力距离的影响更大,这表明社会信任在很大程度上影响着伊斯兰银行家引导这种特殊融资的决策。在文化价值观更偏向个人主义(集体主义色彩较淡)和更倾向于避免不确定性的国家,正规机构与股权融资之间的联系较弱。这些研究结果表明,在根据伊斯兰教原则制定增加融资的政策时,有必要提高正规机构的质量,并将文化因素考虑在内。
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来源期刊
Pacific-Basin Finance Journal
Pacific-Basin Finance Journal BUSINESS, FINANCE-
CiteScore
6.80
自引率
6.50%
发文量
157
期刊介绍: The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.
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