International Journal of Economics and Financial Issues, 2017
This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conv... more This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conventional Banks (CB) to manage liquidity risk; determine the effects of the global financial crisis on Islamic and conventional banks, and propose some mechanisms to improve resilience against liquidity risk. Univariate and panel regression analyses were used. This was made by highlighting the factors affecting Liquidity Risk Exposure (LRE) in relation to a cross-country sample that utilises both accounting and economic data. 204 banks were investigated in the Middle East and North Africa (MENA) region, as well as South-Eastern Asian (SEA) countries during 2005-2012. Results revealed that IB recorded the highest average Liquidity Risk (LR) exposure compared to CB. There are significant differences between IB and CB banks in terms of LR factors. It is found that 92% of LR exposures are instigated by financial crises, banks’ gearing, gross domestic product (GDP), off-balance sheet items, to...
The purpose of this study is to examine the factors affecting the profitability levels of commerc... more The purpose of this study is to examine the factors affecting the profitability levels of commercial banks whether Islamic and non-Islamic over the period 2000-2018, to suggest ways to enhance the Islamic and non-Islamic banks profitability levels’ in the GCC countries. This research employed Bivariate analysis and panel regression in the investigation process. The study employed return on assets ratio as a proxy for banks profitability. The study found out that conventional banks are more efficient than Islamic banks in terms of profitability levels. There are substantial variances between both Islamic and conventional banks in terms of the determinants of banks' profitability. It is found that 89% of the Islamic bank’s profitability and 85% of conventional banks profitability influenced by bank size, market to book value, capital ratio, cash to assets, gross domestic product GDP, GDP growth, and inflation.
This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conv... more This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conventional Banks (CB) to manage liquidity risk; determine the effects of the global financial crisis on Islamic and conventional banks, and propose some mechanisms to improve resilience against liquidity risk. Univariate and panel regression analyses were used. This was made by highlighting the factors affecting Liquidity Risk Exposure (LRE) in relation to a crosscountry sample that utilises both accounting and economic data. 204 banks were investigated in the Middle East and North Africa (MENA) region, as well as SouthEastern Asian (SEA) countries during 2005-2012. Results revealed that IB recorded the highest average Liquidity Risk (LR) exposure compared to CB. There are significant differences between IB and CB banks in terms of LR factors. It is found that 92% of LR exposures are instigated by financial crises, banks' gearing, gross domestic product (GDP), off-balance sheet items, total securities held by the banks, non-earning assets divided by total assets for banks and liquid assets in CB.
This research investigates the determinant of dividend policy for a sample of non-financial compa... more This research investigates the determinant of dividend policy for a sample of non-financial companies in Jordan over the period 2005–2016. This study concentrates on some variables that effect the dividend pay-out ratio and the dividend yield such as: Company size, risk, investment opportunities, historical dividend, profitability and leverage. This study used the panel dataset of non-financial companies in Jordan. The results show that company size showed significant positive impact, which could solve the free cash flow problem, mature and large companies were paying more and consistent dividends. The return on equity was positive and significant, that firms with high profitability were paying larger consistent dividend pay-outs. The impact of historical dividends always positive and significant and signposts that firms trend of dividend payout rather than the random paying. Risk has a negative impact on the payout levels. The analysis was depending on some theories that affect the dividend policy such as: Dividends irrelevance theory, bird in hand theory, pecking order theory, agency problems and signaling theory.
This research aims to analyze the movement of dividend policy announcements impact on share price... more This research aims to analyze the movement of dividend policy announcements impact on share prices, and the performance of all listed banks in Gulf area pre-during-post the financial crisis. This research has positioned and utilized event study method, and dividend pay-out ratio to evaluate the movements in share prices of two event windows for 65 banks (All listed banks) from 2005 to 2013. The main results for this research showed that there is a strong signaling effect since most of the windows show positive impact of dividend announcements on the CAARS. Likewise, there can be equally significant lifecycle impact since the large banks show different pay out pattern as compared with the small banks. Moreover, there has been steady dividend pay by banks at an average even in the crisis periods. In addition, a proportion of payers have increased as compared to the non-payers over years, which is related to both life cycle and competition theories. The last finding presents that banking sector in the GCC countries have not been affected like other emerging countries during the global financial crisis, because they supported by oil prices. 1. Background During the last few decades, a large number of previous academic studies have discussed and provided the effect of dividend announcements on share price. Dividend theories provided significant theory and empirical studies about this issue in different countries with different stock exchange markets. However, all these studies did not accept and approve a common view for it. The central concern for the economist, especially the financial economist, was the corporate dividend policy impact on the firm value, shareholder's wealth and the presence of ideal corporate dividend policy. In dividend scholarships, Lintner (1956) was the leader for the examination between dividend policy and firm value. He provided that dividend policies under imperfect capital market conditions play an essential role in the decision making for management and shareholders wealth. In addition, the author introduced that fluctuation in corporate dividend policies may transfer some data to financial markets about the future and current financial position of the firm. In this regard, the idea of information asymmetries between investors and managers was introduced. Hence, the researcher reported positive market reaction (stock prices) to the increase in distributed amount of dividends for shareholders and vice versa with the decrease in dividends amount. Many researchers, such as Walter (1956) and Gordon (1962), obtained the same findings of Lintner (1956) about the market reaction to dividend announcement. Miller and Modigliani (1961) criticized the previous discussion, and ignored the impact of dividend policy on firm value and shareholders wealth because they supported the assumption of perfect capital markets with perfect conditions (no tax, no transaction cost). They illustrated that managers may effect on the firm value by just changing the investment policies. The third and last group of researchers, Brennan (1970), Brennan and Thakor (1990), introduced a combination between the findings of Lintner (1956) and Miller and Modigliani (1961). They presented that corporate dividend policy is related to the value of corporation, but at the same time, it is also critical. Moreover, this group of researchers presented the tax effect and the impact of it on share price: with high dividend payment with the
International Journal of Economics and Financial Issues, 2017
This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conv... more This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conventional Banks (CB) to manage liquidity risk; determine the effects of the global financial crisis on Islamic and conventional banks, and propose some mechanisms to improve resilience against liquidity risk. Univariate and panel regression analyses were used. This was made by highlighting the factors affecting Liquidity Risk Exposure (LRE) in relation to a cross-country sample that utilises both accounting and economic data. 204 banks were investigated in the Middle East and North Africa (MENA) region, as well as South-Eastern Asian (SEA) countries during 2005-2012. Results revealed that IB recorded the highest average Liquidity Risk (LR) exposure compared to CB. There are significant differences between IB and CB banks in terms of LR factors. It is found that 92% of LR exposures are instigated by financial crises, banks’ gearing, gross domestic product (GDP), off-balance sheet items, to...
The purpose of this study is to examine the factors affecting the profitability levels of commerc... more The purpose of this study is to examine the factors affecting the profitability levels of commercial banks whether Islamic and non-Islamic over the period 2000-2018, to suggest ways to enhance the Islamic and non-Islamic banks profitability levels’ in the GCC countries. This research employed Bivariate analysis and panel regression in the investigation process. The study employed return on assets ratio as a proxy for banks profitability. The study found out that conventional banks are more efficient than Islamic banks in terms of profitability levels. There are substantial variances between both Islamic and conventional banks in terms of the determinants of banks' profitability. It is found that 89% of the Islamic bank’s profitability and 85% of conventional banks profitability influenced by bank size, market to book value, capital ratio, cash to assets, gross domestic product GDP, GDP growth, and inflation.
This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conv... more This research aims to identify the factors influencing the ability of Islamic Banks (IB) and Conventional Banks (CB) to manage liquidity risk; determine the effects of the global financial crisis on Islamic and conventional banks, and propose some mechanisms to improve resilience against liquidity risk. Univariate and panel regression analyses were used. This was made by highlighting the factors affecting Liquidity Risk Exposure (LRE) in relation to a crosscountry sample that utilises both accounting and economic data. 204 banks were investigated in the Middle East and North Africa (MENA) region, as well as SouthEastern Asian (SEA) countries during 2005-2012. Results revealed that IB recorded the highest average Liquidity Risk (LR) exposure compared to CB. There are significant differences between IB and CB banks in terms of LR factors. It is found that 92% of LR exposures are instigated by financial crises, banks' gearing, gross domestic product (GDP), off-balance sheet items, total securities held by the banks, non-earning assets divided by total assets for banks and liquid assets in CB.
This research investigates the determinant of dividend policy for a sample of non-financial compa... more This research investigates the determinant of dividend policy for a sample of non-financial companies in Jordan over the period 2005–2016. This study concentrates on some variables that effect the dividend pay-out ratio and the dividend yield such as: Company size, risk, investment opportunities, historical dividend, profitability and leverage. This study used the panel dataset of non-financial companies in Jordan. The results show that company size showed significant positive impact, which could solve the free cash flow problem, mature and large companies were paying more and consistent dividends. The return on equity was positive and significant, that firms with high profitability were paying larger consistent dividend pay-outs. The impact of historical dividends always positive and significant and signposts that firms trend of dividend payout rather than the random paying. Risk has a negative impact on the payout levels. The analysis was depending on some theories that affect the dividend policy such as: Dividends irrelevance theory, bird in hand theory, pecking order theory, agency problems and signaling theory.
This research aims to analyze the movement of dividend policy announcements impact on share price... more This research aims to analyze the movement of dividend policy announcements impact on share prices, and the performance of all listed banks in Gulf area pre-during-post the financial crisis. This research has positioned and utilized event study method, and dividend pay-out ratio to evaluate the movements in share prices of two event windows for 65 banks (All listed banks) from 2005 to 2013. The main results for this research showed that there is a strong signaling effect since most of the windows show positive impact of dividend announcements on the CAARS. Likewise, there can be equally significant lifecycle impact since the large banks show different pay out pattern as compared with the small banks. Moreover, there has been steady dividend pay by banks at an average even in the crisis periods. In addition, a proportion of payers have increased as compared to the non-payers over years, which is related to both life cycle and competition theories. The last finding presents that banking sector in the GCC countries have not been affected like other emerging countries during the global financial crisis, because they supported by oil prices. 1. Background During the last few decades, a large number of previous academic studies have discussed and provided the effect of dividend announcements on share price. Dividend theories provided significant theory and empirical studies about this issue in different countries with different stock exchange markets. However, all these studies did not accept and approve a common view for it. The central concern for the economist, especially the financial economist, was the corporate dividend policy impact on the firm value, shareholder's wealth and the presence of ideal corporate dividend policy. In dividend scholarships, Lintner (1956) was the leader for the examination between dividend policy and firm value. He provided that dividend policies under imperfect capital market conditions play an essential role in the decision making for management and shareholders wealth. In addition, the author introduced that fluctuation in corporate dividend policies may transfer some data to financial markets about the future and current financial position of the firm. In this regard, the idea of information asymmetries between investors and managers was introduced. Hence, the researcher reported positive market reaction (stock prices) to the increase in distributed amount of dividends for shareholders and vice versa with the decrease in dividends amount. Many researchers, such as Walter (1956) and Gordon (1962), obtained the same findings of Lintner (1956) about the market reaction to dividend announcement. Miller and Modigliani (1961) criticized the previous discussion, and ignored the impact of dividend policy on firm value and shareholders wealth because they supported the assumption of perfect capital markets with perfect conditions (no tax, no transaction cost). They illustrated that managers may effect on the firm value by just changing the investment policies. The third and last group of researchers, Brennan (1970), Brennan and Thakor (1990), introduced a combination between the findings of Lintner (1956) and Miller and Modigliani (1961). They presented that corporate dividend policy is related to the value of corporation, but at the same time, it is also critical. Moreover, this group of researchers presented the tax effect and the impact of it on share price: with high dividend payment with the
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