Search results

1 – 4 of 4
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 19 July 2024

Anwar Adem Shikur and Erhan Akkas

This study aims to examine the influence of Islamic microfinance services (IMFS) on poverty reduction in the eastern part of Ethiopia.

209

Abstract

Purpose

This study aims to examine the influence of Islamic microfinance services (IMFS) on poverty reduction in the eastern part of Ethiopia.

Design/methodology/approach

A binary logistic regression model was used to analyze poverty reduction and income, education, household size, age and saving of IMFS through a semi-closed questionnaire by using a purposive sampling technique. A semi-closed interview with higher officials from an Islamic microfinance service was also used.

Findings

The study results show that the income, education, household size and age of the IMFS’ clients are the major influencing factors that affect poverty reduction in Ethiopia.

Practical implications

The study’s findings provide insights for policymakers to revise intensively their regulations and directives for Islamic microfinance operators. It emphasizes the government’s role in serving the community’s interests through financial inclusion and in developing programs to enhance the effectiveness of Islamic microfinance operations in the poverty reduction process. As a social implication, Islamic microfinance service providers gain insights into how beneficiary-side variables contribute to the country’s poverty reduction after offering Islamic microfinance products to them.

Originality/value

The results of this study are distinctive because they show how poverty reduction in Ethiopia is influenced by how income level is increased, how better educational level is attained, how household size is managed and how well the age of the client is effectively used for productivity. The paper also provides a new view of Islamic microfinance in Ethiopia, its influencing factors for poverty reduction and challenges with the operating system.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 17 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

Access Restricted. View access options
Article
Publication date: 24 January 2022

Erhan Akkas and Mehmet Asutay

This paper aims to comparatively examine the impact of the intellectual capital performance on the financial performance of Islamic and conventional banks in the Gulf Cooperation…

1004

Abstract

Purpose

This paper aims to comparatively examine the impact of the intellectual capital performance on the financial performance of Islamic and conventional banks in the Gulf Cooperation Council (GCC) countries by classifying intellectual capital as human capital, knowledge creation and innovation processes.

Design/methodology/approach

Along with the theoretical discussion in essentialising the rationale for intellectual capital formation through Islamic norms, the empirical analysis is formulated through the data generated by disclosure analysis using a panel of five GCC countries examining 408 annual reports from 19 Islamic and 23 conventional banks covering 2010–2019 period. In the analysis of the generated data, both fixed and random effects regression models are used.

Findings

The findings of this paper suggest that Islamic banks perform better than conventional banks in creating intellectual capital through knowledge creation, human capital and intellectual contribution. While the intellectual capital disclosure index and its pillars are significant for Islamic banks, these variables are not significant for the conventional banks in the GCC countries.

Research limitations/implications

Considering that disclosed information may not reflect actual experience and performance, factual data could also be used to overcome potential shortcomings of disclosure generated data.

Practical implications

This paper demonstrates that Islamic banks in the GCC have been successful in their intellectual capital performance, whereby they seem to be performing in line with the Islamic ontology. In addition, the disclosure items used in this paper may guide the Islamic and conventional banks in the process of preparing their annual reports. Importantly, they may use these items as benchmarks in further developing their intellectual capital performance for better financial performance.

Originality/value

This paper essentialises knowledge development and innovation for Islamic banks through the Islamic cognitive system rather than as a requirement of the market mechanism. Secondly, a comparative analysis between Islamic and conventional banks is presented by acknowledging the peculiarities of Islamic banks in the methodology and disclosure index.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 15 no. 5
Type: Research Article
ISSN: 1753-8394

Keywords

Access Restricted. View access options
Article
Publication date: 10 February 2022

Erhan Akkas and Mehmet Asutay

This paper aims to evaluate the impact of intellectual capital in terms of human capital, structural capital and capital employed on the financial performance of Islamic and…

885

Abstract

Purpose

This paper aims to evaluate the impact of intellectual capital in terms of human capital, structural capital and capital employed on the financial performance of Islamic and conventional banks in the Gulf Cooperation Council (GCC) countries.

Design/methodology/approach

Along with the measurement discussion, the empirical analysis examines the relationship between intellectual capital measured through value-added intellectual coefficient (VAIC) and the financial performance of banks in the GCC states by conducting a panel of six GCC countries, including 24 Islamic banks and 32 conventional banks covering 2012–2020 period.

Findings

This paper shows that while Islamic banks have similar VAIC, human capital efficiency and capital employed efficiency results to conventional banks, Islamic banks have lagged behind conventional banks regarding the impact of structural capital on financial performance. It is argued that this is in contradiction with Islamic ontology and epistemology, which essentialises intellectual capital formation.

Practical implications

Islamic banks should promote research and development for their intellectual capital at the product, operational and institutional levels, as Islamic banking is considered an alternative financing method, incorporating a new form of knowledge-based institutions inspired by capitalist institutions.

Originality/value

This study conducts a comparative examination of the intellectual capital performance and its impact on financial performance by using interaction variables to capture any differences between Islamic banks and conventional banks in the GCC countries. The paper also considers the knowledge economy impact as a novelty, which is prominent for the GCC countries. In addition, Islamic ontology’s essentialisation of knowledge and its articulation in the form of intellectual capital within modern understanding is widely discussed, as part of originality. Finally, the findings are located within Islamic ontology and epistemology.

Details

Journal of Financial Reporting and Accounting, vol. 21 no. 5
Type: Research Article
ISSN: 1985-2517

Keywords

Access Restricted. View access options
Article
Publication date: 9 August 2021

Erhan Akkas and Hazem Al Samman

This paper aims to investigate and provide an objective appraisal of the impact of the COVID-19 outbreak on Islamic and conventional financial institutions and Islamic windows in…

948

Abstract

Purpose

This paper aims to investigate and provide an objective appraisal of the impact of the COVID-19 outbreak on Islamic and conventional financial institutions and Islamic windows in the Gulf Cooperation Council (GCC) countries.

Design/methodology/approach

The panel data techniques are conducted country-wise in each financial institution type: random-effect model, fixed-effect model and Hausman test.

Findings

The results of the first phase analysis that extends from 1 January 2020 to 30 October 2020 show that Islamic financial institutions are less exposed to the repercussions of the COVID-19 outbreak than the conventional and Islamic window financial institutions in Bahrain, Oman, Qatar, Saudi Arabia and UAE. Moreover, the Islamic financial institutions in Saudi Arabia and Oman have not been affected by the COVID-19 outbreak. The second phase analysis for the COVID-19 outbreak that extends from 1 November 2020 to 17 March 2021 confirms the disappearance of the negative impact of COVID-19 on Islamic financial institutions in Bahrain and Oman.

Practical implications

The findings present that Islamic banks are not as resilient in the COVID-19 pandemic as in the 2008 financial crisis. It can be suggested that regulatory authorities, financial institutions and other key policymakers in the GCC countries should focus on implementing regulatory reforms related to human capital, innovative products, research and development to further develop individuals, societies and institutions within the framework of Islamic ontology to be more resilient in such crises.

Originality/value

This paper provides a different perspective from existing literature on the pandemics and financial institutions by comparing the stock prices in Islamic and conventional financial institutions and Islamic windows in GCC countries during the COVID-19 pandemic. Therefore, this paper should be considered as a contribution to filling a gap in the literature.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 15 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

1 – 4 of 4
Per page
102050