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:	Article
Language:	English
Published:	Universiti Teknologi MARA Terengganu 2013
Subjects:	BP173.75 Islam and economics HG1501 Banking
Online Access:	http://irep.iium.edu.my/31957/ http://irep.iium.edu.my/31957/ http://irep.iium.edu.my/31957/1/Terengganu_International_Finance_and_Economics_Journal%2C_3%281%29%2C_pp_1-7%2C_2013.pdf

id	iium-31957
recordtype	eprints
spelling	iium-319572013-09-25T06:15:09Z http://irep.iium.edu.my/31957/ 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. Universiti Teknologi MARA Terengganu 2013-03-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/31957/1/Terengganu_International_Finance_and_Economics_Journal%2C_3%281%29%2C_pp_1-7%2C_2013.pdf Abduh, Muhamad and Omar, Mohd. Azmi and Mesic, Edina (2013) Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach. Terengganu International Finance and Economics Journal, 3 (1). pp. 1-7. ISSN 2232-0539 http://tifej.uitm.edu.my/images/stories/V3I1/v3i1a1.profitability%20determinants%20of.pdf
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	Article
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
publisher	Universiti Teknologi MARA Terengganu
publishDate	2013
url	http://irep.iium.edu.my/31957/ http://irep.iium.edu.my/31957/ http://irep.iium.edu.my/31957/1/Terengganu_International_Finance_and_Economics_Journal%2C_3%281%29%2C_pp_1-7%2C_2013.pdf
first_indexed	2023-09-18T20:46:06Z
last_indexed	2023-09-18T20:46:06Z
_version_	1777409685580677120

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

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