Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia
Purpose: This study aims to compare the governance, risk-taking, and efficiency of pure Islamic Banks between Pakistan and Malaysia. Design: Total 9 years of data from 2009 to 2017 used for analysis. Data Envelopment Analysis (DEA) has been used for the measurement of Islamic bank's efficiency...
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| Language: | English |
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Seisense
2021-02-01
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| Series: | SEISENSE Business Review |
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| Online Access: | https://journal.seisense.com/sbr/article/view/533 |
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| author | Qaiser Abbas |
| author_facet | Qaiser Abbas |
| author_sort | Qaiser Abbas |
| collection | DOAJ |
| description | Purpose: This study aims to compare the governance, risk-taking, and efficiency of pure Islamic Banks between Pakistan and Malaysia.
Design: Total 9 years of data from 2009 to 2017 used for analysis. Data Envelopment Analysis (DEA) has been used for the measurement of Islamic bank's efficiency. Efficiency has been measured by (Technical Efficiency, Pure Technical Efficiency, and Scale Efficiency). Z-score has been used to measure risk-taking.
Results: This comparative study shows that Shariah Supervisory Board has a significant impact only on Malaysian Islamic Banks with technical, pure technical, and scale efficiency. At the same time, board independence has a meaningful relationship with the efficiency of IBs of both countries. Board meetings significantly impact Pakistani Banks' pure technical efficiency while it substantially affects Malaysian banks' technical efficiency. Results also show that risk-taking has a significant negative impact on the efficiency of both countries.
Implications: Pakistani Islamic banks should focus more on Shariah Supervisory Boards to develop the Islamic Banking system in Pakistan because it significantly impacts the Efficiency of Malaysian IBs.
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| format | Article |
| id | doaj-art-687e13733b4e4aa8b25cefca45aa1e48 |
| institution | Kabale University |
| issn | 2788-7561 |
| language | English |
| publishDate | 2021-02-01 |
| publisher | Seisense |
| record_format | Article |
| series | SEISENSE Business Review |
| spelling | doaj-art-687e13733b4e4aa8b25cefca45aa1e482024-12-26T06:18:08ZengSeisenseSEISENSE Business Review2788-75612021-02-011110.33215/sbr.v1i1.533Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and MalaysiaQaiser Abbas0Department of Commerce Bahauddin Zakariya University, Multan, PakistanPurpose: This study aims to compare the governance, risk-taking, and efficiency of pure Islamic Banks between Pakistan and Malaysia. Design: Total 9 years of data from 2009 to 2017 used for analysis. Data Envelopment Analysis (DEA) has been used for the measurement of Islamic bank's efficiency. Efficiency has been measured by (Technical Efficiency, Pure Technical Efficiency, and Scale Efficiency). Z-score has been used to measure risk-taking. Results: This comparative study shows that Shariah Supervisory Board has a significant impact only on Malaysian Islamic Banks with technical, pure technical, and scale efficiency. At the same time, board independence has a meaningful relationship with the efficiency of IBs of both countries. Board meetings significantly impact Pakistani Banks' pure technical efficiency while it substantially affects Malaysian banks' technical efficiency. Results also show that risk-taking has a significant negative impact on the efficiency of both countries. Implications: Pakistani Islamic banks should focus more on Shariah Supervisory Boards to develop the Islamic Banking system in Pakistan because it significantly impacts the Efficiency of Malaysian IBs. https://journal.seisense.com/sbr/article/view/533efficiency of islamic banksrisk takinggovernance of islamic banks |
| spellingShingle | Qaiser Abbas Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia SEISENSE Business Review efficiency of islamic banks risk taking governance of islamic banks |
| title | Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia |
| title_full | Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia |
| title_fullStr | Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia |
| title_full_unstemmed | Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia |
| title_short | Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia |
| title_sort | corporate governance risk taking and efficiency of islamic banks comparative study between pakistan and malaysia |
| topic | efficiency of islamic banks risk taking governance of islamic banks |
| url | https://journal.seisense.com/sbr/article/view/533 |
| work_keys_str_mv | AT qaiserabbas corporategovernancerisktakingandefficiencyofislamicbankscomparativestudybetweenpakistanandmalaysia |