We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Islamic Bank Profit-Loss Sharing Financing and Earnings Volatility.
- Authors
Warninda, Titi Dewi; Rokhim, Rofikoh; Ekaputra, Irwan Adi
- Abstract
Profit-loss sharing (PLS) financing comprises Musharakah and Mudarabah ought to be the main form of Islamic banks' financing. However, based on Southeast Asia, South Asia, and the Middle East Islamic banks' data, this research shows that the proportion of PLS financing is still deficient compared to debt financing. Moreover, it shows that only Musharakah financing displays a significant linear and nonlinear (inverse U-shape) association with Islamic bank earnings volatility. The empirical estimates suggest that earnings volatility is maximized when the proportions of Musharakah financing is about 31%. Increasing this type of financing beyond 31% may lower earnings volatility.
- Subjects
BANKING industry; CORPORATE profits; BUSINESS losses; MARKET volatility; FINANCE
- Publication
Pertanika Journal of Social Sciences & Humanities, 2019, Vol 27, Issue S2, p229
- ISSN
0128-7702
- Publication type
Article