|کد مقاله||سال انتشار||مقاله انگلیسی||ترجمه فارسی||تعداد کلمات|
|83324||2017||7 صفحه PDF||سفارش دهید||5741 کلمه|
Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : Economic Modelling, Volume 67, December 2017, Pages 300-306
While studies have focused on Islamic banking, research on the effect of the geographical environment on Islamic banks is scarce. We investigate this issue by using daily data on 12 Islamic banks in four regions (Africa, Asia, Europe, and the United States) from July 2007 to April 2016. We apply different methodological approaches (principal component analysis, panel data tests, and quantile regression). First, the principal component analysis shows that the performance of Islamic banks varies among regions. Second, the linear panel regression highlights that the geographical environment positively and significantly affects Islamic banking, suggesting the importance of externality effects. Finally, the environmental effect seems to vary with quantiles (positive effect for the lowest quantile versus negative effect for the highest quantile). This quantile specification points to nonlinearity in the environmentâIslamic bank performance relationship, reflecting a time-varying discipline imposed by the Sharia board (Islamic Law). This finding helps better explain the main difference between Islamic banks in the East (Africa and Asia) and those in the West (Europe and the United States) and also enables investors to adjust their portfolio choices when considering the products of Islamic banks according to regional specificities.