Main Article Content
Abstract
Brief Introduction:
Purpose: This study aims to evaluate and compare the performance of Islamic Banks in two different counties complying two different accounting standards, namely Qatar International Islamic Bank (QIIB), Bahrain Islamic Bank (BIB) and Bank Muamalat Indonesia.
Design/methodology/approach: This study used quantitative method with secondary data from the annual report of QIIB, BIB, and BMI.
Findings: This study sheds light on the financial performance of QIIB, BIB, and BMI as well as the difference among them.
Practical implications: The study provides a picture for the Islamic Finance industry regarding the performance of these two banks and what the implication of adopting different accounting standard on this case.
Social implications: This study helps to raise the awareness of society about the existence of Islamic banks and how well they have performed.
Originality/value: As far as we are concerned, there is only small number of research on finding the significance of accounting standard adoption toward performance of Islamic banks, although the urgency is increasingly growing for a better convergence and significant development of Islamic banks. This work is an attempt to fill in this gap.
Keywords: Islamic Banking, Financial Performance, CAMEL ratio
Article Details
References
- AAOIFI, (2015). Accounting, Auditing and Governance Standards. Manama: Dar AlMaiman.
- Abdelsalam, O., Dimitropoulos, P., Elnahass, M. & Leventis, S. (2016). Earnings
- Management Behaviors under Different Monitoring Mechanisms: The Case of Islamic
- and Conventional Banks. Journal of Economic Behavior & Organization (special issue
- on Islamic Finance).
- Belal, A., Abdelsalam, O. and Nizamee, S. (2014). Ethical Reporting in Islami Bank Bangladesh Limited (1983–2010). Journal of Business Ethics, 129(4), pp.769-784.
- Capital Standards, (2010). CSR’s Corporate Governance Code: Principles & Recommended Best Practices for Public Companies. Qatar.
- Cho, C., Roberts, R. and Patten, D. (2010). The Language of US Corporate Environmental Disclosure.Accounting, Organizations and Society, 35(4), pp.431-443.
- DICTION. (2013). Digitext, Inc.
- Eikon. (2012). Thomson Reuters Database.
- Ferrouhi, E. (2014). Moroccan Banks Analysis Using CAMEL Model. International Journal of Economics and Financial Issues, 4(3), pp.622-627.
- García-Meca, E., García-Sánchez, I. and Martínez-Ferrero, J. (2015). Board Diversity and Its Effects on Bank Performance: An International Analysis. Journal of Banking & Finance, 53, pp.202-214.
- Gasbarro, D., Sadguna, I. and Zumwalt, J. (2002). The Changing Relationship Between CAMEL Ratings and Bank Soundness during the Indonesian Banking Crisis. Review of Quantitative Finance and Accounting, 19, pp.247-260.
- Hamzah, A. and Zulkafli, A. (2014). Board Diversity and Corporate Expropriation. Procedia - Social and Behavioral Sciences, 164, pp.562-568.
- Lei, Q., Lin, B. and Wei, M. (2013). Types of Agency Cost, Corporate Governance and Liquidity.Journal of Accounting and Public Policy, 32(3), pp.147-172.
- Maali, B., Casson, P. and Napier, C. (2006). Social reporting by Islamic Banks. Abacus, 42(2), pp.266-289.
- Mallin, C. (2013). Corporate Governance. 4th ed. Oxford: Oxford University Press.
- Merchant, I. P. (2012). Performance analysis of banks using CAMEL approach, An Empirical
- study of Islamic Banks VersusConventional Banks of GCC.
- Merkl-Davies, D. and Brennan, N. (2007). Discretionary Disclosure Strategies in Corporate Narratives: Incremental Information or Impression Management?. Journal of Accounting Literature, 26, pp.116-196.
- Qatar Financial Market Authority, (2009). Corporate Governance Code For Companies Listed in Markets Regulated by The Qatar Financial Markets Authority.
- Sarker, A. (2006). CAMELS Rating System in the Context of Islamic Banking: A Proposed ‘S’ for Shariah Framework. Journal of Islamic Economics, Banking and Finance, 2(2).
- Shleifer, A. and Vishny, R. (1997). A Survey of Corporate Governance. The Journal of Finance, 2(2), pp.737-783.
- The Committee on the Financial Aspects of Corporate Governance, (1992). Financial Aspects of Corporate Governance. London: Gee and Co. Ltd.
- Uddin, M. (2016). Effect of Government Share Ownership on Corporate Risk Taking: Caseof the United Arab Emirates. Research in International Business and Finance, 36, pp.322-339.
References
AAOIFI, (2015). Accounting, Auditing and Governance Standards. Manama: Dar AlMaiman.
Abdelsalam, O., Dimitropoulos, P., Elnahass, M. & Leventis, S. (2016). Earnings
Management Behaviors under Different Monitoring Mechanisms: The Case of Islamic
and Conventional Banks. Journal of Economic Behavior & Organization (special issue
on Islamic Finance).
Belal, A., Abdelsalam, O. and Nizamee, S. (2014). Ethical Reporting in Islami Bank Bangladesh Limited (1983–2010). Journal of Business Ethics, 129(4), pp.769-784.
Capital Standards, (2010). CSR’s Corporate Governance Code: Principles & Recommended Best Practices for Public Companies. Qatar.
Cho, C., Roberts, R. and Patten, D. (2010). The Language of US Corporate Environmental Disclosure.Accounting, Organizations and Society, 35(4), pp.431-443.
DICTION. (2013). Digitext, Inc.
Eikon. (2012). Thomson Reuters Database.
Ferrouhi, E. (2014). Moroccan Banks Analysis Using CAMEL Model. International Journal of Economics and Financial Issues, 4(3), pp.622-627.
García-Meca, E., García-Sánchez, I. and Martínez-Ferrero, J. (2015). Board Diversity and Its Effects on Bank Performance: An International Analysis. Journal of Banking & Finance, 53, pp.202-214.
Gasbarro, D., Sadguna, I. and Zumwalt, J. (2002). The Changing Relationship Between CAMEL Ratings and Bank Soundness during the Indonesian Banking Crisis. Review of Quantitative Finance and Accounting, 19, pp.247-260.
Hamzah, A. and Zulkafli, A. (2014). Board Diversity and Corporate Expropriation. Procedia - Social and Behavioral Sciences, 164, pp.562-568.
Lei, Q., Lin, B. and Wei, M. (2013). Types of Agency Cost, Corporate Governance and Liquidity.Journal of Accounting and Public Policy, 32(3), pp.147-172.
Maali, B., Casson, P. and Napier, C. (2006). Social reporting by Islamic Banks. Abacus, 42(2), pp.266-289.
Mallin, C. (2013). Corporate Governance. 4th ed. Oxford: Oxford University Press.
Merchant, I. P. (2012). Performance analysis of banks using CAMEL approach, An Empirical
study of Islamic Banks VersusConventional Banks of GCC.
Merkl-Davies, D. and Brennan, N. (2007). Discretionary Disclosure Strategies in Corporate Narratives: Incremental Information or Impression Management?. Journal of Accounting Literature, 26, pp.116-196.
Qatar Financial Market Authority, (2009). Corporate Governance Code For Companies Listed in Markets Regulated by The Qatar Financial Markets Authority.
Sarker, A. (2006). CAMELS Rating System in the Context of Islamic Banking: A Proposed ‘S’ for Shariah Framework. Journal of Islamic Economics, Banking and Finance, 2(2).
Shleifer, A. and Vishny, R. (1997). A Survey of Corporate Governance. The Journal of Finance, 2(2), pp.737-783.
The Committee on the Financial Aspects of Corporate Governance, (1992). Financial Aspects of Corporate Governance. London: Gee and Co. Ltd.
Uddin, M. (2016). Effect of Government Share Ownership on Corporate Risk Taking: Caseof the United Arab Emirates. Research in International Business and Finance, 36, pp.322-339.