Country governance and the performance of Islamic and conventional bank: international evidence

The impact of corporate governance on banking firms has been widely documented in the literature. Noticeably absent is an extensive examination of the impact of country governance on the efficiency of banking firms. This limitation is surprising, given the fact that the banking sector remains the mo...

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Main Authors: Sufian, Fadzlan, Hassan, M. Kabir, Kamarudin, Fakarudin, Md Nassir, Annuar
Format: Book Section
Language:English
Published: Edward Elgar Publishing 2016
Online Access:http://psasir.upm.edu.my/id/eprint/52704/1/Country%20governance%20and%20the%20performance%20of%20Islamic%20and%20conventional%20bank.pdf
http://psasir.upm.edu.my/id/eprint/52704/
https://www.elgaronline.com/view/edcoll/9781784710729/9781784710729.00021.xml
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spelling my.upm.eprints.527042021-09-05T00:41:51Z http://psasir.upm.edu.my/id/eprint/52704/ Country governance and the performance of Islamic and conventional bank: international evidence Sufian, Fadzlan Hassan, M. Kabir Kamarudin, Fakarudin Md Nassir, Annuar The impact of corporate governance on banking firms has been widely documented in the literature. Noticeably absent is an extensive examination of the impact of country governance on the efficiency of banking firms. This limitation is surprising, given the fact that the banking sector remains the most important channel for savings and allocations of credit in the economy. By using data on 454 Islamic and conventional banks from 19 countries offering Islamic banking and finance products and services, this chapter attempts to fill this demanding gap. We find that voice and accountability positively influence the efficiency of both Islamic and conventional banks. On the other hand, we observe the negative impact of political stability, absence of violence and control of corruption. The findings indicate that government effectiveness, regulatory quality and rule of law negatively influence the efficiency of conventional banks, but not so in the case of Islamic banks. Edward Elgar Publishing Hassan, M. Kabir 2016 Book Section PeerReviewed text en http://psasir.upm.edu.my/id/eprint/52704/1/Country%20governance%20and%20the%20performance%20of%20Islamic%20and%20conventional%20bank.pdf Sufian, Fadzlan and Hassan, M. Kabir and Kamarudin, Fakarudin and Md Nassir, Annuar (2016) Country governance and the performance of Islamic and conventional bank: international evidence. In: Handbook of Empirical Research on Islam and Economic Life. Edward Elgar Publishing, Cheltenham, United Kindom, pp. 306-331. ISBN 1784710725/9781784710729; EISBN: 9781784710736 https://www.elgaronline.com/view/edcoll/9781784710729/9781784710729.00021.xml 10.4337/9781784710736.00021
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The impact of corporate governance on banking firms has been widely documented in the literature. Noticeably absent is an extensive examination of the impact of country governance on the efficiency of banking firms. This limitation is surprising, given the fact that the banking sector remains the most important channel for savings and allocations of credit in the economy. By using data on 454 Islamic and conventional banks from 19 countries offering Islamic banking and finance products and services, this chapter attempts to fill this demanding gap. We find that voice and accountability positively influence the efficiency of both Islamic and conventional banks. On the other hand, we observe the negative impact of political stability, absence of violence and control of corruption. The findings indicate that government effectiveness, regulatory quality and rule of law negatively influence the efficiency of conventional banks, but not so in the case of Islamic banks.
author2 Hassan, M. Kabir
author_facet Hassan, M. Kabir
Sufian, Fadzlan
Hassan, M. Kabir
Kamarudin, Fakarudin
Md Nassir, Annuar
format Book Section
author Sufian, Fadzlan
Hassan, M. Kabir
Kamarudin, Fakarudin
Md Nassir, Annuar
spellingShingle Sufian, Fadzlan
Hassan, M. Kabir
Kamarudin, Fakarudin
Md Nassir, Annuar
Country governance and the performance of Islamic and conventional bank: international evidence
author_sort Sufian, Fadzlan
title Country governance and the performance of Islamic and conventional bank: international evidence
title_short Country governance and the performance of Islamic and conventional bank: international evidence
title_full Country governance and the performance of Islamic and conventional bank: international evidence
title_fullStr Country governance and the performance of Islamic and conventional bank: international evidence
title_full_unstemmed Country governance and the performance of Islamic and conventional bank: international evidence
title_sort country governance and the performance of islamic and conventional bank: international evidence
publisher Edward Elgar Publishing
publishDate 2016
url http://psasir.upm.edu.my/id/eprint/52704/1/Country%20governance%20and%20the%20performance%20of%20Islamic%20and%20conventional%20bank.pdf
http://psasir.upm.edu.my/id/eprint/52704/
https://www.elgaronline.com/view/edcoll/9781784710729/9781784710729.00021.xml
_version_ 1710677134148632576
score 13.211869