GRM 2010 GRM 2011

Abstract Details

 
AUTHOR NAME
 
Family Name:
Aljifri
 
First Name:
Khaled
 
ABSTRACT OF PAPER
 
Title of Paper:
Sustainability of Earnings in Islamic Banks
 
Paper Proposal Text :
This paper proposes a new approach that can be used to assess sustainability of earnings in Islamic Banks. The approach differentiates between the effect of the two types of Islamic financial products (risk-sharing products and risk-shifting products) on the sustainability of earnings in Islamic banks. The approach considers the level of strictness of compliance with Shariah law in contracts and suggests that risk-sharing products should have more value relevant to earnings sustainability in Islamic banks compared to risk-shifting products. The paper provides a proposed model for measuring sustainability of earnings in Islamic Banks. It used a sample of 118 full Islamic Banks for the years 2009-2014, banks with Islamic window were excluded. The sample covers the following countries: GCC, Singapore, Malaysia, Pakistan, selected Middle East countries, UK, France, Germany and a few more selected European countries. The study used the KK Model to classify the study sample into three categories (i.e., Conservatives, Moderates, and Liberals) and examine their sustainability of earnings. The findings of this paper reveal important facts that could affect the sustainability level of earnings in Islamic banks.
 
 
 

WITH THE GENEROUS SUPPORT OF