UPM Institutional Repository

Does country governance foster revenue efficiency of Islamic and conventional banks in GCC countries?


Citation

Kamarudin, Fakarudin and Sufian, Fadzlan and Md Nasir, Annuar (2016) Does country governance foster revenue efficiency of Islamic and conventional banks in GCC countries? EuroMed Journal of Business, 11 (2). pp. 181-211. ISSN 1450-2194

Abstract

Purpose The purpose of this paper is to provide new empirical evidence on the impact of country governance on the revenue efficiency of Islamic and conventional banks. The empirical analysis is confined to Islamic and conventional banks operating in the Gulf Cooperation Council (GCC) countries banking sectors during the period of 2007-2011. Design/methodology/approach The analysis comprises two main stages. In the first stage, the authors employ the data envelopment analysis (DEA) method to compute the revenue efficiency of Islamic and conventional banks. The authors then used the multivariate panel regression analysis with the ordinary least square and generalized method of moments as an estimation method to investigate the potential determinants and the effect of country governance on the revenue efficiency. Findings The empirical findings indicate that greater voice and accountability, government effectiveness, and rule of law enhance the revenue efficiency of both Islamic and conventional banks. The authors find that regulatory quality exerts positive influence on Islamic banks, while the impact of political stability and control of corruption enhances the revenue efficiency of conventional banks. Originality/value The study on the specific revenue efficiency concept of Islamic and conventional banking is still in its formative stage. In regards, majority of the studies that examined the effect of governance on bank efficiency have focused more on the corporate or bank governance that affects the governance within the institution. Thus, to the best of the knowledge, no study has been done to address the effect of country governance on the revenue efficiency of Islamic and conventional banks specifically on the GCC countries.


Download File

[img]
Preview
PDF (Abstract)
Does country governance foster revenue efficiency of Islamic and conventional banks in .pdf

Download (85kB) | Preview

Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.1108/emjb-06-2015-0026
Publisher: Emerald Group Publishing Limited
Keywords: Data envelopment analysis; Revenue efficiency; Country governance; Gulf Cooperation Council
Depositing User: Mohd Hafiz Che Mahasan
Date Deposited: 14 Aug 2017 10:43
Last Modified: 14 Aug 2017 10:43
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1108/emjb-06-2015-0026
URI: http://psasir.upm.edu.my/id/eprint/55558
Statistic Details: View Download Statistic

Actions (login required)

View Item View Item