Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach

This paper examines the impact of bank-specific and macroeconomic factors upon the profitability performance of Islamic and conventional banks in Malaysia using panel data regression analysis. The sample comprises of seventeen conventional banks and thirteen Islamic banks covering the period of 2005...

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Main Authors: Abduh, Muhamad, Omar, Mohd. Azmi, Mesic, Edina
Format: Conference or Workshop Item
Language:English
Published: 2012
Subjects:
Online Access:http://irep.iium.edu.my/26230/
http://irep.iium.edu.my/26230/1/TiBEC_III_2012_Abduh.pdf
id iium-26230
recordtype eprints
spelling iium-262302013-11-23T03:58:52Z http://irep.iium.edu.my/26230/ Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach Abduh, Muhamad Omar, Mohd. Azmi Mesic, Edina BP173.75 Islam and economics HG1501 Banking This paper examines the impact of bank-specific and macroeconomic factors upon the profitability performance of Islamic and conventional banks in Malaysia using panel data regression analysis. The sample comprises of seventeen conventional banks and thirteen Islamic banks covering the period of 2005-2009. The results show that liquidity ratios and macroeconomic condition are the profitability determinant under pooled OLS framework, while only liquidity ratio is significantly affecting profitability under random effects model. However, final result under fixed effects model shows that types of bank and macroeconomic condition are the significant determinants of bank profitability. This study also evidences that Islamic banks are more profitable than conventional banks during the period analyzed. 2012-10-18 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/26230/1/TiBEC_III_2012_Abduh.pdf Abduh, Muhamad and Omar, Mohd. Azmi and Mesic, Edina (2012) Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach. In: Terengganu International Business and Economics Conference 2012 (TIBEC III), 18-20 October 2012, Primula Beach Hotel, Kuala Terengganu.
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic BP173.75 Islam and economics
HG1501 Banking
spellingShingle BP173.75 Islam and economics
HG1501 Banking
Abduh, Muhamad
Omar, Mohd. Azmi
Mesic, Edina
Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach
description This paper examines the impact of bank-specific and macroeconomic factors upon the profitability performance of Islamic and conventional banks in Malaysia using panel data regression analysis. The sample comprises of seventeen conventional banks and thirteen Islamic banks covering the period of 2005-2009. The results show that liquidity ratios and macroeconomic condition are the profitability determinant under pooled OLS framework, while only liquidity ratio is significantly affecting profitability under random effects model. However, final result under fixed effects model shows that types of bank and macroeconomic condition are the significant determinants of bank profitability. This study also evidences that Islamic banks are more profitable than conventional banks during the period analyzed.
format Conference or Workshop Item
author Abduh, Muhamad
Omar, Mohd. Azmi
Mesic, Edina
author_facet Abduh, Muhamad
Omar, Mohd. Azmi
Mesic, Edina
author_sort Abduh, Muhamad
title Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach
title_short Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach
title_full Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach
title_fullStr Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach
title_full_unstemmed Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach
title_sort profitability determinants of islamic and conventional banks in malaysia: a panel regression approach
publishDate 2012
url http://irep.iium.edu.my/26230/
http://irep.iium.edu.my/26230/1/TiBEC_III_2012_Abduh.pdf
first_indexed 2023-09-18T20:39:05Z
last_indexed 2023-09-18T20:39:05Z
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