Profitability and persistency in the service industry

the case of QISMUT+3

Alimshan Faizulayev, Eralp Bektas, Abd. Ghafar Ismail

Research output: Contribution to journalArticle

Abstract

The aim of this study is to evaluate profitability determinants and profit persistency of Islamic and conventional banks operating in top nine Islamic Finance oriented-countries that are named as QISMUT+3 (Qatar, Indonesia, Saudi Arabia, Malaysia, UAE, Turkey, Bahrain, Kuwait and Pakistan). For this purpose, it uses bank specific, market structure, and macroeconomic variables that are utilized from Orbis Bank Focus and World Bank database. To capture endogeneity problem and unobserved heterogeneity, dynamic approach is used by employing system GMM estimation. The major findings of the study show higher profit persistency of Islamic banks (IBs) than conventional banks (CBs). The results also suggest that profitability determinants of IBs and CBs are different. Concerning the risk behavior, bank capitalization and credit risk variables are more important for CBs. Crisis results attribute better resilience to Islamic banks.

Original languageEnglish
Pages (from-to)1-25
Number of pages25
JournalService Industries Journal
DOIs
Publication statusAccepted/In press - 12 Apr 2018
Externally publishedYes

Fingerprint

Profitability
Industry
Finance
Service industries
Islamic financial institutions
Profit

Keywords

  • conventional banking
  • Islamic banking
  • persistency
  • Profitability
  • QISMUT+3
  • service industry

ASJC Scopus subject areas

  • Strategy and Management
  • Management of Technology and Innovation

Cite this

Profitability and persistency in the service industry : the case of QISMUT+3. / Faizulayev, Alimshan; Bektas, Eralp; Ismail, Abd. Ghafar.

In: Service Industries Journal, 12.04.2018, p. 1-25.

Research output: Contribution to journalArticle

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