Profit Distribution Management by Islamic Banks: An Empirical Investigation

Posted: 21 May 2018

See all articles by Greg Clinch

Greg Clinch

Macquarie Business School

Sayd Farook

Thomson Reuters

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Date Written: 2012

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.

Keywords: Earnings management, profit distribution, Islamic banking

JEL Classification: E44, G21, Z12

Suggested Citation

Clinch, Greg and Farook, Sayd Zubair and Hassan, M. Kabir, Profit Distribution Management by Islamic Banks: An Empirical Investigation (2012). Quarterly Review of Economics and Finance, Vol. 52, 2012, Available at SSRN: https://ssrn.com/abstract=3174170

Greg Clinch (Contact Author)

Macquarie Business School ( email )

Eastern Rd.
North Ryde
Sydney, NSW 2109
United States

Sayd Zubair Farook

Thomson Reuters ( email )

Bahrain

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

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