Journal of Islamic Accounting and Business Research最新文献

{"title":"An exploratory insight into religion based communication in Islamic financial institutions","authors":"Hajira Liaqat, Ishfaq Ahmed, Sheikh Usman Yousaf","doi":"10.1108/jiabr-08-2023-0257","DOIUrl":"https://doi.org/10.1108/jiabr-08-2023-0257","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to explore the phenomenon of Islamic religious communication and how Islamic banks in Pakistan use religion-based communication, along with its expected outcomes.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Transcendental phenomenology approach is opted using a multi-stage data collection strategy consisting of observations, documentary reviews and semi-structural interviews to get deep into the phenomenon in a particular context.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Findings highlight Islamic religious communication as workplace Islamic <em>da’wah</em> that is majorly categorized into compulsive <em>da’wah</em>, objectics <em>da’wah</em> and impulsive <em>da’wah</em>, serving its role in bringing spirituality to work through work-faith integration.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The finding of the study can be used in planning, formulating and implementing Islamic <em>da’wah</em>-based model to induce spirituality at work.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study is the first of its type exploring Islamic <em>da’wah</em> in an organizational context as a mean to bring spirituality at work.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140630482","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The role of Sharia governance in minimizing credit risk in Islamic banking: a systematic literature review","authors":"Annisa Adha Minaryanti, Tettet Fitrijanti, Citra Sukmadilaga, Muhammad Iman Sastra Mihajat","doi":"10.1108/jiabr-11-2022-0301","DOIUrl":"https://doi.org/10.1108/jiabr-11-2022-0301","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this paper is to engage in a systematic examination of previous scholarship on the relationship between Sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and the Internal Sharia Review (ISR), to determine whether the ISR can minimize financing risk in Islamic banking.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The literature search consisted of two steps: a randomized and systematic literature review. The methodology adopted in this article is a systematic literature review.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>To reduce the risk of financing in Islamic banking, SG must be implemented optimally by making rules regarding the role of the SSB in supervising customer financing. In addition, it is a necessary to establish an entity that assists the SSB in the implementation of SG, namely, the ISR section, but there is still very little research on the role of the SSB and ISR in minimizing financing risk.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Establishing an ISR to assist the SSB in carrying out its duties has direct practical implications for Islamic banking: minimizing financing risks and compliance with Islamic Sharia principles. In addition, new rules regarding the role of SSBs and the ISR in reducing credit risk include monitoring customers to ensure that they fulfill their financing commitments on time. This new form of regulation and review can be used as a reference by the Otoritas Jasa Keuangan or Finance Service Authority to create new policies or regulations regarding SG, especially in Indonesia.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Subsequent research may introduce other more relevant variables, such as empirically testing the competence, independence or integrity of SSB and the ISR team as it attempts to minimize the risk of financing in Islamic banks. In addition, further research is expected to examine whether the SSB or the ISR team has a positive or negative influence on the risk of financing Islamic banks with secondary data.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140573370","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Indonesia Shariah Stock Index (ISSI) firms and environmental, social, and governance (ESG) disclosure in Indonesia","authors":"Vidia Gati, Iman Harymawan, Mohammad Nasih","doi":"10.1108/jiabr-12-2022-0354","DOIUrl":"https://doi.org/10.1108/jiabr-12-2022-0354","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine the relationship of Indonesia’s Sharia Stock Index (ISSI) firms on environmental, social and governance (ESG) disclosure. This study is interesting because ISSI firms are supposed to comply with Islamic values as this has been reflected in good corporate governance activities, demonstrating responsibility to others and participating in preserving nature/environmental activities.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors use sample firms that are listed on the Indonesia Shariah-compliant Stock Index (ISSI) from 2011 to 2020, which also published sustainability reports.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The study found that sharia firms are positively related to ESG disclosure. The authors also found that ESG disclosure of sharia firms is more pronounced in the reporting section of general, economic, environmental and social. Other findings suggest differences in the segments reported in the COVID and pre-COVID periods. This result is also robust by conducting a self-selection bias test with Heckman’s two-stage regression and Coarsened Exact Matching regression.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>For policymakers, these results indicate that different characteristics of firms can affect ESG disclosure, and economic conditions will determine which sectors are disclosed the most.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study provides empirical evidence that Indonesian Shariah-compliant stock index firms carried out their mission to disclose more information about their environmental and social responsibilities and governance issues.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140573252","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Was the interest burden of the Ottoman public debt sustainable? A cliometric analysis","authors":"M. Kabir Hassan, Hasan Kazak, Melike Buse Akcan, Hasan Azazi","doi":"10.1108/jiabr-01-2024-0009","DOIUrl":"https://doi.org/10.1108/jiabr-01-2024-0009","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this study is to determine whether the Ottoman Empire’s net interest payments and foreign debt were sustainable or not in terms of their burden on budget revenues, using the method of historical econometric analysis.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>In this study, the period between 1847 and 1882 of the Ottoman Empire is analyzed for sustainability analysis. Within the framework of the study, unit root tests and econometric analysis methods frequently used in the literature were used to analyze the sustainability of public debt. In the econometric analysis, in addition to various unit root tests, current econometric analysis methods, in particular Fourier expansion, were also used.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of econometric analyses showed that the burden of interest payments and foreign debt on the budget of the Ottoman state was unsustainable. This situation clearly shows the reason for the official bankruptcy of the Ottoman Empire, which was declared in 1875.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Although this study reveals the bankruptcy process of an important structure such as the Ottoman Empire in the historical process through econometric analyses, it also gives a very important message to today’s states. Accordingly, today’s state policies and decision-making mechanisms should take these results into account and strive to make the burden of public interest payments sustainable. It is believed that the study will shed light on the public finance policies of today’s states by drawing lessons from the collapse process of the Ottoman state.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Unlike the historical assessments in the literature on the decline of the Ottoman Empire, this study presents a cliometric approach by applying current econometric analysis techniques to past historical data. The study explains the unsustainability of the Ottoman Empire’s interest payments and external debt burden in the period under consideration in a way that, to the best of the authors’ knowledge, has not been done before.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140573119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The digital frontier of Islamic tax compliance: unveiling the influence of ICT as a moderator","authors":"Mohd Abass Bhat, S. Khan, Yousuf Mohamed Zahran Al Balushi, Abel Dula Wedajo, Mohammad Haseeb","doi":"10.1108/jiabr-07-2023-0220","DOIUrl":"https://doi.org/10.1108/jiabr-07-2023-0220","url":null,"abstract":"Purpose\u0000Based on the extended theory of planned behavior, this study aims to examine potential intentions-related factors that affect Islamic tax compliance moderated by information and communication technology (ICT) adoption.\u0000\u0000Design/methodology/approach\u0000A quantitative cross-sectional design was used to distribute questionnaire sets to 975 working Muslim Omanis by using convenience sampling method. PLS-SEM was mainly used to examine the data.\u0000\u0000Findings\u0000All the factors determine behavioral intention to pay Islamic tax (BIIT), which significantly predicts Islamic tax compliance behavior (ITCB). However, perceived control behavior negatively determines intention. ICT adoption moderates the link between BIIT and ITCB.\u0000\u0000Practical implications\u0000This study offers both practical and theoretical implications that can guide efforts to promote Islamic tax compliance and advance our understanding of tax behavior within the ETPB framework.\u0000\u0000Originality/value\u0000This study accounted for crucial factors determining intention than earlier ones using the ETPB. Considering technological advancements, the study also assessed the moderating role of ICT between BIIT and ITCB.\u0000","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140722133","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Religiosity-based behavioral study, Islamic finance users’ approach and selection standard: empirical evidence from Pakistan","authors":"Muhammad Nazir, Shahab E. Saqib","doi":"10.1108/jiabr-02-2023-0047","DOIUrl":"https://doi.org/10.1108/jiabr-02-2023-0047","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Considering the speedy growth of Islamic finance and limited research work on Muslim behavior regarding Islamic Banking, this study aims to investigate to comprehend the stimulus of religiosity on customer’s behavior.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>A conceptual model is developed on existing literature. The key dimensions of religiosity in the model include practice, knowledge, experience and consequences to capture the whole religiosity of customers. Model of the study investigates the impact of customer’s religiosity on their behavior in decision-making about selection of Islamic bank. Analysis of the study is based on the sample of 370 customers of Islamic banks from District Nowshera Khyber Pakhtunkhwa, Pakistan. The data for the study collected through random sampling by a comprehensive survey questionnaire. Binary logistic model is used to test the data for statistical analysis.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The key findings of the study suggest that religiosity influence customer behavior positively in decision-making regarding Islamic finance. Service standards of Islamic banking has also significant impact on customer perception, while the financial education of the customers has insignificant impact on customer behavior.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study mainly focused on the curiosity of the customer religious commitment, so religiosity is a vast phenomenon; there are deep sections in each dimension of religiosity, so further study is suggested for the comprehensive capture of each dimension of religiosity.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The results of the study have a great importance for the managers of Islamic finance industry to identify and detect the potential customers and divide the target market of banking industry on the base of religiosity. Furthermore, the study may bring significant managerial suggestions for marketing planners and can help them in market segmentation strategies.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The study examined the association between Muslim religiosity and Islamic banking customer’s selection behavior. This study spread the understanding of religiosity and its impact on Islamic banking customer’s behavior. Furthermore, the study is valuable to discover the level to which religiosity determines the inclinations of customers. This study helps marketing practitioners and researchers to grow their knowledge about customer’s motives in terms of religious commitment.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140573346","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Efficiency, liquidity risk and asset quality: a comparative analysis of Islamic and conventional banks in Pakistan","authors":"Raheel Safdar, Afira Fatima, Memoona Sajid","doi":"10.1108/jiabr-03-2023-0079","DOIUrl":"https://doi.org/10.1108/jiabr-03-2023-0079","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate differences between Islamic and conventional banks in Pakistan with respect to their operational efficiency, liquidity risk and asset quality. Importantly, in addition to full-fledged Islamic and conventional banks, this study also investigates a more recently emerged breed of hybrid banks, i.e. Islamic divisions of conventional banks.\u0000\u0000\u0000Design/methodology/approach\u0000Data for the period 2011–2020 was collected from financial reports of all full-fledged Islamic banks (5), Islamic banking divisions of conventional banks (8) and conventional banks (20) in Pakistan. Logistic regressions were designed to test the proposed hypotheses.\u0000\u0000\u0000Findings\u0000The findings suggest that full-fledged Islamic banks are operationally less efficient and experience higher liquidity risk than conventional banks. However, the asset quality of Islamic banks is better than that of conventional banks. Next, in the robustness analysis, the authors extended the sample size by adding the Islamic divisions (window) of the conventional banks; they found almost the same result except for efficiency which turned out to be non-significantly related to bank type.\u0000\u0000\u0000Practical implications\u0000The findings are beneficial for investors, depositors, consumers and bank management in understanding the financial features of such as efficiency, liquidity and liquidity risk that separate Islamic banks from conventional banks.\u0000\u0000\u0000Originality/value\u0000The findings of this study present a clear picture to bankers and practitioners about some financial features of banking systems and depict that Islamic banks are in need to improve their liquidity risk management practices to compete with conventional banks.\u0000","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140354809","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A review on Gharar dimension in modern Islamic finance transactions","authors":"Mohd Shahid Mohd Noh, Suffian Haqiem Nor Azelan, Muhammad Izzul Syahmi Zulkepli","doi":"10.1108/jiabr-01-2023-0006","DOIUrl":"https://doi.org/10.1108/jiabr-01-2023-0006","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to systematically review the literature on modern Islamic finance transactions pertaining to <em>Gharar</em> dimensions. <em>Gharar</em> is defined as uncertainty that potentially leads to ambiguities and conflicts in contracts.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The articles reviewed in this study consisted of 13 articles related to <em>Gharar</em> published between 2013 and 2022. All selected articles were empirically and descriptively searched using specific keywords and strings. The main sources for this study were Scopus and Web of Science (WoS), whereas Google Scholar was a supportive database.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The review found that the dimensions that discussed previous research were trying their best to elaborating <em>Gharar</em> in modern financial transactions. They also demonstrate that rigorous study and deployment of the definition remain in the context defined by jurisprudence scholars. The focus of recent studies pertaining to <em>Gharar</em> is derivatives products that indicate high possibility of uncertainty in its operation.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This method relies heavily on the accessed database, namely, Scopus and WoS, also referred to the articles as recommended by the databases. Furthermore, the criteria of inclusion and exclusion of papers outlined by the authors deemed as an intrinsic limitation in writing systematic literature review.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this paper is original in its nature whereby the scholars had different comprehension on how <em>Gharar</em> exists in transaction but they still centred in its original meaning of uncertainty. As a result, this paper also realized how <em>Gharar</em> were interpreted differently relied on the contract’s nature and behaviour. In addition, this paper is expected to contribute to understand how <em>Gharar</em> been interpreted in modern finance transactions and finally reached to the point that further research is needed in establishing <em>Gharar</em> parameter for each contract in Islamic commercial law.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140322261","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Intellectual capital and financial performance: does board size and independent directors matter? An empirical enquiry","authors":"Syed Quaid Ali Shah, Fong Woon Lai, Muhammad Tahir, Muhammad Kashif Shad, Salaheldin Hamad, Syed Emad Azhar Ali","doi":"10.1108/jiabr-02-2023-0043","DOIUrl":"https://doi.org/10.1108/jiabr-02-2023-0043","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in the banking industry, it is vital to understand the effect of IC on financial performance. This study aims to investigate the effect of IC on return on equity (ROE), with a unique emphasis on the moderating role of board attributes. Previous studies have overlooked this moderating role.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The study sample consists of 17 banks and a panel data set spanning 2016–2021, extracted from annual reports. Antel Pulic’s value-added intellectual coefficient (VAIC) model is used to compute IC. To analyze the data, a generalized least squares analysis is conducted. The robustness of the analysis is ensured by using the two-stage least squares (2SLS) econometric technique.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings indicate that both the VAIC and human capital efficiency (HCE) have a significant impact on the ROE of banks. In terms of moderation, it is observed that board size (BS) exerts a negative effect on the association between VAIC, HCE, structural capital efficiency and ROE. Additionally, BS positively compounds the connection between capital employed efficiency and ROE. Similarly, the presence of independent directors (IND) significantly moderates the effects of VAIC and its components on the ROE of banks in Pakistan.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Banks should focus on the HCE for a higher ROE. Moreover, banks ought to prioritize appointing more independent directors in the boardroom for effective utilization of IC and greater ROE.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>The findings of the study, which analyzed data from Pakistan’s banking sector, are original and provide additional insights into the literature on IC and board attributes.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-03-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140205337","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Bank liquidity creation, loan concentration and liquidity risk: a comparative analysis of dual banking system","authors":"Hassan Akram, Adnan Hushmat","doi":"10.1108/jiabr-07-2023-0228","DOIUrl":"https://doi.org/10.1108/jiabr-07-2023-0228","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Keeping in view the robust growth of Islamic banking around the globe, this study aims to comparatively analyze the association between liquidity creation and liquidity risk for Islamic banks (IBANs) and conventional banks (CBANs) in Pakistan and Malaysia over a period of 2004–2021. The moderating role of bank loan concentration on the aforementioned relationship is also studied.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Regression estimation methods such as fixed effect, random effect and generalized least square are deployed for obtaining results. Liquidity creation Burger Bouwman measure (cat fat and noncat fat) and Basel-III liquidity risk measure (liquidity coverage ratio) are also used.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results give us insight that liquidity creation is positively and significantly related to liquidity risk in both IBANs and CBANs of Pakistan and Malaysia. This relationship has been moderated negatively (reversed) and significantly by credit concentration showing the importance of risk management and loan portfolio concentration.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>It is analyzed that during the process of liquidity creation, IBANs in Pakistan faced more liquidity risk for both on and off-balance sheet transactions in the presence of moderation of loan concentration than IBANs in Malaysia necessitating strategic policy-making for important aspects of liquidity risk management and loan concentration while creating liquidity.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Such studies comparing IBANs and CBANs comparison keeping in view liquidity creation, liquidity risk and loan concentration are either limited or nonexistent.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140097298","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}