Show simple item record

AuthorKhediri, Karim Ben
AuthorCharfeddine, Lanouar
AuthorBen Youssef, Slah
Available date2022-12-27T08:14:14Z
Publication Date2015
Publication NameResearch in International Business and Finance
ResourceScopus
URIhttp://dx.doi.org/10.1016/j.ribaf.2014.07.002
URIhttp://hdl.handle.net/10576/37633
AbstractThis paper contributes to the empirical literature on Islamic finance by investigating the feature of Islamic and conventional banks in Gulf Cooperation Council (GCC) countries over the period 2003-2010. We use parametric and non-parametric classification models (Linear discriminant analysis, Logistic regression, Tree of classification and Neural network) to examine whether financial ratios can be used to distinguish between Islamic and conventional banks. Univariate results show that Islamic banks are, on average, more profitable, more liquid, better capitalized, and have lower credit risk than conventional banks. We also find that Islamic banks are, on average, less involved in off-balance sheet activities and have more operating leverage than their conventional peers. Results from classification models show that the two types of banks may be differentiated in terms of credit and insolvency risk, operating leverage and off-balance sheet activities, but not in terms of profitability and liquidity. More interestingly, we find that the recent global financial crisis has a negative impact on the profitability for both Islamic and conventional banks, but time shifted. Finally, results show that Logit regression obtained slightly higher classification accuracies than other models. 2014 Elsevier B.V.
Languageen
PublisherElsevier
SubjectClassification techniques
GCC banking
Islamic finance
TitleIslamic versus conventional banks in the GCC countries: A comparative study using classification techniques
TypeArticle
Pagination75-98
Volume Number33
dc.accessType Abstract Only


Files in this item

FilesSizeFormatView

There are no files associated with this item.

This item appears in the following Collection(s)

Show simple item record