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Funding liquidity in Islamic banks: Does the Shariah supervisory board's higher educational attainment matter?

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  • Safiullah, Md

Abstract

This study investigates whether higher educational attainment (i.e., doctorate degrees) of Shariah supervisory board (SSB) members is relevant to funding liquidity in Islamic banks. Using a firm fixed effects regression framework with data from 63 Islamic banks in 10 countries, we find that higher educational attainment of SSB members increases funding liquidity. We also show that the result holds when we employ subsample analysis for countries with a national-level Shariah regulatory authority, a systematically important Islamic banking sector, and young and small Islamic banks. Our results remain consistent after employing the alternative estimation techniques of change analysis, propensity score-matching analysis, and instrumental variable approach.

Suggested Citation

  • Safiullah, Md, 2023. "Funding liquidity in Islamic banks: Does the Shariah supervisory board's higher educational attainment matter?," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:pacfin:v:78:y:2023:i:c:s0927538x23000422
    DOI: 10.1016/j.pacfin.2023.101976
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    References listed on IDEAS

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    More about this item

    Keywords

    Funding liquidity; Education; Shariah board; Islamic banking;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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