Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle East
This study aimed to determine the factors affecting the capital structure of Islamic banks for a sample of the Middle East for the period 2011-2021. The study used a panel data method by pooling ordinary least squares, fixed effects, and random effects to determine the relationship between book leve...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
İLKE İlim Kültür Eğitim Vakfı
2024-02-01
|
| Series: | Türkiye İslam İktisadı Dergisi |
| Subjects: | |
| Online Access: | https://tujise.org/content/6-issues/22-11-1/a4005/tujise_11-1-6.al-badarin-abanda.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1841561409346863104 |
|---|---|
| author | Abdalla Mohammad Khalaf Al Badarin Nabeela Khaleel Ibrahim Abanda |
| author_facet | Abdalla Mohammad Khalaf Al Badarin Nabeela Khaleel Ibrahim Abanda |
| author_sort | Abdalla Mohammad Khalaf Al Badarin |
| collection | DOAJ |
| description | This study aimed to determine the factors affecting the capital structure of Islamic banks for a sample of the Middle East for the period 2011-2021. The study used a panel data method by pooling ordinary least squares, fixed effects, and random effects to determine the relationship between book leverage and internal variables such as profitability, size, non-debt tax shield, growth opportunity, tangibility, liquidity, and earnings volatility. The descriptive statistics indicate that Islamic banks are highly leveraged. The results of regression showed that the impact of profitability, size, and growth opportunity is positive on book leverage. In contrast, the results indicated a negative impact of non-debt tax shield and liquidity on book leverage. The results also showed no impact of tangibility and earnings volatility on book leverage. Based on the results, Islamic banks in the Middle East enjoy a special method of choosing capital structure depending on their competitive advantage derived from the concentration of a large proportion of Muslim people dealing with them. Nevertheless, the management of Islamic banks must take the mentioned variables into consideration. |
| format | Article |
| id | doaj-art-5a930ab9eb304c348bdfa6c754516e7d |
| institution | Kabale University |
| issn | 2148-3809 |
| language | English |
| publishDate | 2024-02-01 |
| publisher | İLKE İlim Kültür Eğitim Vakfı |
| record_format | Article |
| series | Türkiye İslam İktisadı Dergisi |
| spelling | doaj-art-5a930ab9eb304c348bdfa6c754516e7d2025-01-03T01:36:55ZengİLKE İlim Kültür Eğitim VakfıTürkiye İslam İktisadı Dergisi2148-38092024-02-0111112314210.26414/A4005Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle EastAbdalla Mohammad Khalaf Al Badarin0https://orcid.org/0000-0002-8441-9145Nabeela Khaleel Ibrahim Abandahttps://orcid.org/0000-0002-4266-6666Yarmouk UniversityThis study aimed to determine the factors affecting the capital structure of Islamic banks for a sample of the Middle East for the period 2011-2021. The study used a panel data method by pooling ordinary least squares, fixed effects, and random effects to determine the relationship between book leverage and internal variables such as profitability, size, non-debt tax shield, growth opportunity, tangibility, liquidity, and earnings volatility. The descriptive statistics indicate that Islamic banks are highly leveraged. The results of regression showed that the impact of profitability, size, and growth opportunity is positive on book leverage. In contrast, the results indicated a negative impact of non-debt tax shield and liquidity on book leverage. The results also showed no impact of tangibility and earnings volatility on book leverage. Based on the results, Islamic banks in the Middle East enjoy a special method of choosing capital structure depending on their competitive advantage derived from the concentration of a large proportion of Muslim people dealing with them. Nevertheless, the management of Islamic banks must take the mentioned variables into consideration.https://tujise.org/content/6-issues/22-11-1/a4005/tujise_11-1-6.al-badarin-abanda.pdfcapital structureislamic banksmiddle eastdeterminantsbook leverageprofitabilitynon-debt tax shieldgrowth opportunity |
| spellingShingle | Abdalla Mohammad Khalaf Al Badarin Nabeela Khaleel Ibrahim Abanda Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle East Türkiye İslam İktisadı Dergisi capital structure islamic banks middle east determinants book leverage profitability non-debt tax shield growth opportunity |
| title | Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle East |
| title_full | Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle East |
| title_fullStr | Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle East |
| title_full_unstemmed | Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle East |
| title_short | Internal Determinants of Capital Structure of Islamic Banks: Evidence from the Middle East |
| title_sort | internal determinants of capital structure of islamic banks evidence from the middle east |
| topic | capital structure islamic banks middle east determinants book leverage profitability non-debt tax shield growth opportunity |
| url | https://tujise.org/content/6-issues/22-11-1/a4005/tujise_11-1-6.al-badarin-abanda.pdf |
| work_keys_str_mv | AT abdallamohammadkhalafalbadarin internaldeterminantsofcapitalstructureofislamicbanksevidencefromthemiddleeast AT nabeelakhaleelibrahimabanda internaldeterminantsofcapitalstructureofislamicbanksevidencefromthemiddleeast |