The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic Banks
Risk is an inevitable reality for financial institutions, and once it is known, the main activity to be done is an effective risk management.The purpose of this study is to empirically analyze the effects of risk management practices on financial performance in Islamic banks. This study examines the...
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| Format: | Article |
| Language: | English |
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Selcuk University Press
2023-08-01
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| Series: | Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/2841881 |
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| author | Mine Işık Raif Parlakkaya Gülşah Şen Küçük Suna Akten Çürük |
| author_facet | Mine Işık Raif Parlakkaya Gülşah Şen Küçük Suna Akten Çürük |
| author_sort | Mine Işık |
| collection | DOAJ |
| description | Risk is an inevitable reality for financial institutions, and once it is known, the main activity to be done is an effective risk management.The purpose of this study is to empirically analyze the effects of risk management practices on financial performance in Islamic banks. This study examines the effect of risk management practices on the financial performances of three Islamic banks operating in Türkiye through regression analysis. The data set of the study consists of a panel data containing 180 observations in total. Return on equity and return on assets, which are used as indicators of banks' financial performance, are dependent variables of the model. The financial ratios used to represent risk management are the independent variables of the model. The findings reveal that leverage ratio and asset utilization ratio have statistically significant effects on the performance of Islamic banks. The results of the study support the findings and arguments in the established body of previous literature. The findings obtained within the scope of this study could be used as guidance for the banks in their financial risk management practices and they will shed light on the future studies. |
| format | Article |
| id | doaj-art-542f0524c7ce4d72b98fa13e5ee4df85 |
| institution | Kabale University |
| issn | 2667-4750 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Selcuk University Press |
| record_format | Article |
| series | Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi |
| spelling | doaj-art-542f0524c7ce4d72b98fa13e5ee4df852024-12-02T05:11:02ZengSelcuk University PressSelçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi2667-47502023-08-0151183310.52642/susbed.1221549154The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic BanksMine Işık0Raif Parlakkaya1Gülşah Şen Küçük2Suna Akten Çürük3BAYBURT ÜNİVERSİTESİNECMETTİN ERBAKAN ÜNİVERSİTESİNECMETTİN ERBAKAN ÜNİVERSİTESİNECMETTİN ERBAKAN ÜNİVERSİTESİRisk is an inevitable reality for financial institutions, and once it is known, the main activity to be done is an effective risk management.The purpose of this study is to empirically analyze the effects of risk management practices on financial performance in Islamic banks. This study examines the effect of risk management practices on the financial performances of three Islamic banks operating in Türkiye through regression analysis. The data set of the study consists of a panel data containing 180 observations in total. Return on equity and return on assets, which are used as indicators of banks' financial performance, are dependent variables of the model. The financial ratios used to represent risk management are the independent variables of the model. The findings reveal that leverage ratio and asset utilization ratio have statistically significant effects on the performance of Islamic banks. The results of the study support the findings and arguments in the established body of previous literature. The findings obtained within the scope of this study could be used as guidance for the banks in their financial risk management practices and they will shed light on the future studies.https://dergipark.org.tr/tr/download/article-file/2841881risk yönetimifinansal performansi̇slami bankalarpanel regresyon.risk managementfinancial performanceislamic bankspanel regression.risk yönetimifinansal performansi̇slami bankalarpanel regresyon.risk yönetimifinansal performansi̇slami bankalarpanel regresyon. |
| spellingShingle | Mine Işık Raif Parlakkaya Gülşah Şen Küçük Suna Akten Çürük The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic Banks Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi risk yönetimi finansal performans i̇slami bankalar panel regresyon. risk management financial performance islamic banks panel regression. risk yönetimi finansal performans i̇slami bankalar panel regresyon. risk yönetimi finansal performans i̇slami bankalar panel regresyon. |
| title | The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic Banks |
| title_full | The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic Banks |
| title_fullStr | The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic Banks |
| title_full_unstemmed | The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic Banks |
| title_short | The Effects of Risk Management Practices on Financial Performance: An Empirical Analysis on Islamic Banks |
| title_sort | effects of risk management practices on financial performance an empirical analysis on islamic banks |
| topic | risk yönetimi finansal performans i̇slami bankalar panel regresyon. risk management financial performance islamic banks panel regression. risk yönetimi finansal performans i̇slami bankalar panel regresyon. risk yönetimi finansal performans i̇slami bankalar panel regresyon. |
| url | https://dergipark.org.tr/tr/download/article-file/2841881 |
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