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Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis

After the 2007-2008 subprime financial crisis considering bankruptcy evaluation for the banking industry becomes vital. In line of that, this study aims to analyze the bankruptcy profile of foreign versus domestic Islamic banks operating in Malaysia. This study predicted 40% and 75% bankruptcy in th...

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Main Authors: Jan, Amin, Marimuthu, Maran
Format: Citation Index Journal
Published: 2016
Subjects:
HG Finance
Online Access:http://eprints.utp.edu.my/12055/1/Bankruptcy%20Profile%20of%20Foreign%20versus%20Domestic%20Islamic%20Banks%20of%20Malaysia_A%20Post%20Crisis%20Period%20Analysis.pdf
http://eprints.utp.edu.my/12055/
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spelling my.utp.eprints.120552017-03-20T00:31:47Z Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis Jan, Amin Marimuthu, Maran HG Finance After the 2007-2008 subprime financial crisis considering bankruptcy evaluation for the banking industry becomes vital. In line of that, this study aims to analyze the bankruptcy profile of foreign versus domestic Islamic banks operating in Malaysia. This study predicted 40% and 75% bankruptcy in the subjected samples of foreign and domestic Islamic banks of Malaysia respectively. However, the specific reason behind this variation in their bankruptcy rates is tagged with the significant difference in their liquidity ratio that is, 1.59 by foreign and 0.41 by the domestic Islamic banks sample. The ANOVA results revealed that, the sample of foreign and domestic Islamic banks of Malaysia do differ significantly on bankruptcy rates as well as on the top bankruptcy’s predictors namely liquidity, profitability, and insolvency. However, the sample does not vary on productivity with regards to bankruptcy exposure. Furthermore, the regression results revealed that, liquidity, profitability, and insolvency ratios in the sample of domestic Islamic banks, while only insolvency ratio in the sample of foreign Islamic banks have a significant positive relationship with bankruptcy in Islamic banking industry of Malaysia. Moreover, in the context of identified bankruptcy rates, the analysis here is viable to witness the sustainability ratings possessed by the sample of foreign and domestic Islamic banks of Malaysia. 2016 Citation Index Journal PeerReviewed application/pdf http://eprints.utp.edu.my/12055/1/Bankruptcy%20Profile%20of%20Foreign%20versus%20Domestic%20Islamic%20Banks%20of%20Malaysia_A%20Post%20Crisis%20Period%20Analysis.pdf Jan, Amin and Marimuthu, Maran (2016) Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis. [Citation Index Journal] http://eprints.utp.edu.my/12055/
institution Universiti Teknologi Petronas
building UTP Resource Centre
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Petronas
content_source UTP Institutional Repository
url_provider http://eprints.utp.edu.my/
topic HG Finance
spellingShingle HG Finance
Jan, Amin
Marimuthu, Maran
Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis
description After the 2007-2008 subprime financial crisis considering bankruptcy evaluation for the banking industry becomes vital. In line of that, this study aims to analyze the bankruptcy profile of foreign versus domestic Islamic banks operating in Malaysia. This study predicted 40% and 75% bankruptcy in the subjected samples of foreign and domestic Islamic banks of Malaysia respectively. However, the specific reason behind this variation in their bankruptcy rates is tagged with the significant difference in their liquidity ratio that is, 1.59 by foreign and 0.41 by the domestic Islamic banks sample. The ANOVA results revealed that, the sample of foreign and domestic Islamic banks of Malaysia do differ significantly on bankruptcy rates as well as on the top bankruptcy’s predictors namely liquidity, profitability, and insolvency. However, the sample does not vary on productivity with regards to bankruptcy exposure. Furthermore, the regression results revealed that, liquidity, profitability, and insolvency ratios in the sample of domestic Islamic banks, while only insolvency ratio in the sample of foreign Islamic banks have a significant positive relationship with bankruptcy in Islamic banking industry of Malaysia. Moreover, in the context of identified bankruptcy rates, the analysis here is viable to witness the sustainability ratings possessed by the sample of foreign and domestic Islamic banks of Malaysia.
format Citation Index Journal
author Jan, Amin
Marimuthu, Maran
author_facet Jan, Amin
Marimuthu, Maran
author_sort Jan, Amin
title Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis
title_short Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis
title_full Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis
title_fullStr Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis
title_full_unstemmed Bankruptcy Profile of Foreign versus Domestic Islamic Banks of Malaysia: A Post Crisis Period Analysis
title_sort bankruptcy profile of foreign versus domestic islamic banks of malaysia: a post crisis period analysis
publishDate 2016
url http://eprints.utp.edu.my/12055/1/Bankruptcy%20Profile%20of%20Foreign%20versus%20Domestic%20Islamic%20Banks%20of%20Malaysia_A%20Post%20Crisis%20Period%20Analysis.pdf
http://eprints.utp.edu.my/12055/
_version_ 1738656004434821120
score 13.211869

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