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

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 varia...

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Main Authors: Shahari, Farihana, Rahman, Md. Saifur
Format: Proceeding Paper
Language:English
Published: Kuala Lumpur International Business Economics & Law Conference (KLibel) 2019
Subjects:
Online Access:http://irep.iium.edu.my/75148/
http://irep.iium.edu.my/75148/1/ACC_079.pdf
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author Shahari, Farihana
Rahman, Md. Saifur
author_facet Shahari, Farihana
Rahman, Md. Saifur
author_sort Shahari, Farihana
building IIUM Repository
collection Online Access
description 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.
first_indexed 2025-11-14T17:35:02Z
format Proceeding Paper
id iium-75148
institution International Islamic University Malaysia
institution_category Local University
language English
last_indexed 2025-11-14T17:35:02Z
publishDate 2019
publisher Kuala Lumpur International Business Economics & Law Conference (KLibel)
recordtype eprints
repository_type Digital Repository
spelling iium-751482020-07-13T01:47:17Z http://irep.iium.edu.my/75148/ Does equity-based financing improve the performance of banking institutions: a case of Islamic banks? Shahari, Farihana Rahman, Md. Saifur HG1501 Banking HG3368 Islamic Banking and Finance 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. Kuala Lumpur International Business Economics & Law Conference (KLibel) 2019 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/75148/1/ACC_079.pdf 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.
spellingShingle HG1501 Banking
HG3368 Islamic Banking and Finance
Shahari, Farihana
Rahman, Md. Saifur
Does equity-based financing improve the performance of banking institutions: a case of Islamic banks?
title Does equity-based financing improve the performance of banking institutions: a case of Islamic banks?
title_full Does equity-based financing improve the performance of banking institutions: a case of Islamic banks?
title_fullStr Does equity-based financing improve the performance of banking institutions: a case of Islamic banks?
title_full_unstemmed Does equity-based financing improve the performance of banking institutions: a case of Islamic banks?
title_short Does equity-based financing improve the performance of banking institutions: a case of Islamic banks?
title_sort does equity-based financing improve the performance of banking institutions: a case of islamic banks?
topic HG1501 Banking
HG3368 Islamic Banking and Finance
url http://irep.iium.edu.my/75148/
http://irep.iium.edu.my/75148/1/ACC_079.pdf