The relationship between zakat disclosures and Islamic banking performance: Evidence from Yemen
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Author(s)Eissa A. Al-HomaidiLink to ORCID Index: https://orcid.org/0000-0002-6230-8276
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Ebrahim Mohammed Al-MatariLink to ORCID Index: https://orcid.org/0000-0001-9247-2766
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Suhaib AnagrehLink to ORCID Index: https://orcid.org/0000-0003-1751-7674
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Mosab I. TabashLink to ORCID Index: https://orcid.org/0000-0003-3688-7224
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Nabil Ahmed Mareai SenanLink to ORCID Index: https://orcid.org/0000-0002-6848-588X
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DOIhttp://dx.doi.org/10.21511/bbs.16(1).2021.05
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Article InfoVolume 16 2021 , Issue #1, pp. 52-61
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516 Downloads
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Creative Commons Attribution 4.0 International License
This paper aims to analyze the link between the disclosure of zakat information and the performance of Islamic financial institutions in Yemen. Panel data of three Islamic banks working in Yemen were used. The study used a 16-item disclosure index to measure zakat disclosure information, and the financial performance of banks was calculated using two proxies, such as return on assets (ROA) and return on equity (ROE). Based on secondary data, this study used correlation matrix, descriptive analysis and regression analysis. ROA results revealed that zakat data and the age of a bank significantly affected financial results calculated by ROA, while the size of Islamic banks had an insignificant influence of banking performance. Zakat information and the size of Islamic banks have a positive effect on bank performance, while the age of the bank negatively influences the performance of banks. The results concerning ROE indicated that zakat data and the age of a bank have a strong and significant influence on the performance of banks, determined by ROA, while the size of a bank has a negative and insignificant effect on the performance of banks, determined by ROE.
- Keywords
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JEL Classification (Paper profile tab)M40, M41, G21, L25
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References56
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Tables4
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Figures0
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- Table 1. Definition of research indicators
- Table 2. Descriptive statistics
- Table 3. Correlation matrix
- Table 4. Regression analysis
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Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 3016 Downloads: 1025 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
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Why banks should consider ESG risk factors in bank lending?
Sarwar Uddin Ahmed ,
Samiul Parvez Ahmed ,
Ikramul Hasan
doi: http://dx.doi.org/10.21511/bbs.13(3).2018.07
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Integrated reporting and financial performance of South African listed banks
Reon Matemane ,
Rozane Wentzel
doi: http://dx.doi.org/10.21511/bbs.14(2).2019.11
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