Profit distribution management by Islamic banks: An empirical investigation

Sayd Farook, M. Kabir Hassan*, Gregory Clinch

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

33 Citations (Scopus)

Abstract

The objective of this paper is to ascertain whether Islamic banks do in fact manage profit distributions and if so, what factors are associated with the extent of profit distribution management. The results suggest that most Islamic banks manage profit distributions, with the extent of profit distribution directly related to religiosity, financial development, asset composition, and existence of discretionary reserves, while it is inversely related to market familiarity with Islamic banking, market concentration, depositor funding reliance and the age of the Islamic bank.

Original languageEnglish
Pages (from-to)333-347
Number of pages15
JournalQuarterly Review of Economics and Finance
Volume52
Issue number3
DOIs
Publication statusPublished - 1 Aug 2012
Externally publishedYes

Keywords

  • Determinants
  • Earnings management
  • Islamic banking
  • Profit distribution

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