IDEAS home Printed from https://ideas.repec.org/a/igg/jabim0/v10y2019i2p73-90.html
   My bibliography  Save this article

Bankruptcy Forecasting and Economic Sustainability Profile of the Market Leading Islamic Banking Countries

Author

Listed:
  • Amin Jan

    (Universiti Teknologi Petronas, Seri Iskandar, Malaysia)

  • Maran Marimuthu

    (Universiti Teknologi Petronas, Seri Iskandar, Malaysia)

  • Muhammad Pisol bin Mohd @ Mat Isa

    (Universiti Teknologi Petronas, Seri Iskandar, Malaysia)

  • Muhammad Kashif Shad

    (Universiti Teknologi Petronas, Seri Iskandar, Malaysia)

Abstract

This study used bankruptcy forecasting as a proxy for measuring economic sustainability profile of the Islamic banks in the market leading Islamic banking countries. The countries are Malaysia, Saudi Arabia, Iran, UAE and Kuwait. A sample of 29 Islamic banks with a post-crisis period data from 2009-2013 was collected for empirical testing. Results indicated that Saudi Arabian Islamic banks recorded the most minimal bankruptcy rate of 29 percent, followed by UAE with 31 percent, Kuwait with 48 percent, Malaysia with 55 percent and Iran with 68 percent respectively. The results further indicated that profitability, liquidity, insolvency, and productivity ratios have a significant positive impact on bankruptcy profile of the selected Islamic banks. This study lends credence to multiple stakeholders for taking appropriate measures regarding the deteriorating economic sustainability of the Islamic banks in the market leading Islamic banking countries. It also urges to develop a separate Shariah-based sustainability measurement framework for the Islamic banks.

Suggested Citation

  • Amin Jan & Maran Marimuthu & Muhammad Pisol bin Mohd @ Mat Isa & Muhammad Kashif Shad, 2019. "Bankruptcy Forecasting and Economic Sustainability Profile of the Market Leading Islamic Banking Countries," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 10(2), pages 73-90, April.
    • Handle: RePEc:igg:jabim0:v:10:y:2019:i:2:p:73-90
    as

    Download full text from publisher

    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJABIM.2019040104
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mehreen Mehreen & Maran Marimuthu & Samsul Ariffin Abdul Karim & Amin Jan, 2020. "Proposing a Multidimensional Bankruptcy Prediction Model: An Approach for Sustainable Islamic Banking," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    2. Amin Jan & Maran Marimuthu & Rohail Hassan & Mehreen, 2019. "Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance," Sustainability, MDPI, vol. 11(23), pages 1-25, November.
    3. Syed Quaid Ali Shah & Fong-Woon Lai & Muhammad Kashif Shad & Zdeňka Konečná & Feybi Ariani Goni & Abdoulmohammad Gholamzadeh Chofreh & Jiří Jaromír Klemeš, 2021. "The Inclusion of Intellectual Capital into the Green Board Committee to Enhance Firm Performance," Sustainability, MDPI, vol. 13(19), pages 1-21, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:jabim0:v:10:y:2019:i:2:p:73-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.