A Panel Survival Analysis for Islamic Banks
International Journal of Economics, Management and Accounting
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Title |
A Panel Survival Analysis for Islamic Banks
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Creator |
Aliyu, Sirajo
Mohd Yusof, Rosylin |
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Description |
This study aims at exploring the significant predictors of Islamic bank survival within the time-varying covariate of risk time exposure. Thus, limited survival studies on the Islamic banks divert the attention of policymakers and practitioners on the failure hazard likelihood and other means to mitigate its menace. The paper adopted panel survival analysis on the Islamic banks of 24 countries. Subsequently, mixed effect and logit model were employed to confirm the earlier predictions and to ascertain the most promising determinants for Islamic bank survival. The findings reveal that non-interest liabilities, assets quality, liquidity and per capita income have a strong influence in explaining Islamic bank survival. Additionally, managerial efficiency and time-varying covariate are better explained in the time survival models. Future survival studies have the opportunity to incorporate Maqāṣid Al-Sharī‘ah index and outreach to verify the social justice compliance of the Islamic banks. Consequently, employing accelerated failure time model will provide other evidence in relation to time length to the event. The paper suggested monitoring the banks’ failure predictors and urged the banks to focus on the real economic sector investment coupled with efficient resource utilization for longer survival.
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Publisher |
Kulliyyah of Economics and Management Sciences
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Date |
2017-08-31
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/526
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Source |
International Journal of Economics, Management and Accounting; Vol 25 No 2 (2017): Special Issue; 381-410
2462-1420 |
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Language |
eng
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Relation |
http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/526/248
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Rights |
Copyright (c) 2017 International Journal of Economics, Management and Accounting
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