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2. Master Thesis / Tesis Master
3. Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

Title:	Islamic bank's risk, profitability and disclosure
Authors:	Ashwag Abdulhameed A Dignah (ZP00167)
Supervisor:	Radizah Abdul Latif, Dr.
Keywords:	Islamic bank's Risk Profitability Disclosure Banks and banking -- Religious aspects -- Islam
Issue Date:	9-Apr-2011
Description:	Islamic banks operate in different manner from conventional banks particularly in adopting profit loss sharing contracts. Therefore, the risks and profitability profiles of Islamic banks are expected to be different. Drawing from the stakeholder and signaling theories, this research examines the level of risk disclosure among Islamic banks, based on some existing requirements, and whether there is a relationship between risk and profitability measures and level of risk disclosure. This study utilizes the regression models over a sample of Islamic banks that operate in Asia, Middle East and Europe for a period between 2006 and 2009. A return to asset, return to equity, and deposit to asset and expense to asset are used as measures of profitability. Leverage, loan loss provision, cash to asset, loan to asset and proportion of profit loss sharing are used as measures of risk. The finding indicates that the level of risk disclosure among Islamic banks is low. The regression result confirm the positive association between profitability and risk disclosure since return to asset, return to equity, and deposit to asset are positively and significantly associated with risk disclosure even though the expense to asset is not significantly associated with risk disclosure. However the association between risk and risk disclosure is not supported, since leverage and loan to asset are negatively associated with risk disclosure whilst cash to asset and loan loss provision are positively associated with risk disclosure. The only measure that supports the hypothesis is the proportion of profit loss sharing which is significantly and positively related to risk disclosure. The results generally support the signaling theory rather than stakeholder theory. this study contributes towards the knowledge of Islamic banks risk disclosure practices in particular by providing evidence of the influence of profit loss sharing financing on disclosure. Finally, it is the only study which concentrates on the disclosure based on Islamic perspective.,Master/Sarjana
Pages:	121
Call Number:	HG3368.A6.D534 2011
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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