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We examine the relationship between bank's equity ownership and corporate financial performance based on cross-sectional data through 2SLS estimation model. Our evidence is based on listed 3203 non-financial firms of 16 Organization of Islamic Conference (OIC) member states with dual-banking system (Islamic and Conventional). Consistent with notion of previous empirical studies, we document a positive impact of both Islamic and Conventional bank-firm equity-based relationships on firm's performance. The study suggests that the presence of bank equity ownership mitigates agency cost and information asymmetry problems, which in turn increase the firm's performance. Hence, the market participants such as portfolio managers may consider the role of financial intermediaries during the construction of risk minimization strategies.

Purpose - The purpose of this paper is to study earnings management practices of Islamic banks and conventional banks in the Middle East region. First, the authors examine factors that may influence Islamic banks managers' use of discretion in reporting loan loss provisions (LLP). Second, the authors investigate differences that may exist between Islamic banks and non-Islamic banks in terms of discretionary loan loss provisions (DLLP) used to manipulate accounting earnings. Design/methodology/approach - This empirical study uses an unbalanced panel data of 21 Islamic banks, 18 conventional banks with Islamic windows and 33 conventional banks, from seven Middle East countries during a period that ranges from 2000 to 2008. The authors use a two-stage approach in order to examine factors that may influence the use of discretion by Islamic banks' managers. Findings - The empirical results reveal that Islamic banks use DLLP for both earnings and capital management. External financing is also found to be a determinant of DLLP. Additional findings show no significant differences among Islamic banks, conventional banks with Islamic windows and conventional banks in using DLLP. These three groups of banks behave similarly in terms of discretion based on DLLP. Practical implications - The findings are potentially useful for regulators, auditors and investors. This study provides regulators with insights to strengthen their financial regulations in order to improve accounting quality. In addition, it helps auditors when considering the provisioning policies adopted by banks in order to detect specific manipulations of accounting earnings. The results may also help investors to focus on the impact of managerial discretion on accounting earnings for evaluation purposes. Originality/value - This study contributes to the literature on Islamic banking. On the one hand, it extends prior research by examining the discretionary component of LLP, instead of being restricted to total LLP. On the other hand, it compares the use of discretion among three groups of banks: full Islamic banks, conventional banks with Islamic windows and full conventional banks.

In Pakistan, the conventional banks start their functions after the independence of Pakistan and followed by the introduction of the Islamic banking’s. In this study, four Conventional and four Islamic banks were selected. The different types of ratios will be used to check the performance of banking sector these ratios are profitability, liquidity, investment and solvency ratios. The different types of ratios were used to check the performance of banking sector and to evaluate the trends of Islamic and commercial banks. The objectives of our study were to evaluate the trend of performance of conventional and Islamic banks and analyses the key performance indicators of the banking systems. The SPSS version 20 was used and the t-test was applied to the data. The findings revealed that the conventional banks were more efficient than the Islamic banks.

Purpose In the Gulf Cooperative Council (GCC) countries, the integrated reporting (IR) concept has attracted considerable attention from banks. In as much as IR is not a legal requirement anywhere in the GCC, however, the incidence of disclosure by banks across the GCC varies considerably and asymmetries exist in the content of disclosure released by banks within, as well as across, these jurisdictions. This study aims to examine the relationship between IR disclosure and financial, operational and market performance in both Islamic and conventional banks. Design/methodology/approach This study examines five years (2012-2016) of IR from 59 banks in GCC countries with 295 observations. The integrated report index (IRI), as the independent variable, is regressed separately against three performance indicators [return on assets, return on equity and Tobin’s Q (TQ)] as dependent variables. In addition, the following two types of control variables are inserted in the regression equations in this study: macroeconomic (two indicators) and bank characteristics (three indicators). Findings The findings elicited from the empirical results demonstrate that, on the one hand, IR in conventional banks positively affects market performance, while negatively affecting operational and financial performance. On the other hand, the results for Islamic banks show that IR negatively affects market performance, with no discernible effect on neither financial nor operational performance. In the GCC banking sector, for the most, empirical results conflict with expectations implied by signaling theory and capital need theory. From this study, evidence suggests that GCC bank performance would not improve were IR disclosure rendered mandatory. However, that conclusion is stronger with respect to Islamic than with respect to conventional banks in the region. Originality/value The study provides insights into the effect of voluntary disclosure of IR as gauged by various measures of performance across Islamic and conventional banks located in a range of GCC countries. This study accordingly provides perspective on the extent to which IR can and does play a role in contributing to bank performance.

PurposeThe aim of this paper has twofold: (1) to explain and compare the financial evolution of Islamic and conventional banking sector in the Gulf Cooperative Council (GCC) countries before and during the COVID-19 pandemic and (2) to explore the key success factors that might affect Islamic and conventional banks performance before and mainly during COVID-19 pandemic period.Design/methodology/approachOrbis Bank Focus database and annual financial reports are used to collect financial information of Islamic and conventional banks in GCC countries over four years: 2017, 2018, 2019 and 2020. Descriptive statistics, T-test, multiple regression, and 2SLS and GMM models are employed to analyze the financial structure and performance of Islamic and conventional banks before and during the COVID-19 pandemic period.FindingsResults of this study reveal that (1) there is a significant difference between Islamic banks and conventional banks during the crisis of COVID-19, where the conventional banks have presented a higher level of financial performance and financial liquidity than their Islamic counterparts, (2) conventional banks have revealed higher capacity to manage their financial risk during the crisis period, and (3) a high level of non-performing loan, high inflation rate and high percentage of non-important cost have a negative impact on the financial performance of Islamic banks mainly during the pandemic period of COVID-19. However, the result indicates that a high level of liquidity risk increased the performance of Islamic banks but this impact falls sharply during the pandemic period.Originality/valueThis study provides information that supports investors, regulators and executive managers in GCC countries. A well-structured balance sheet would improve the financial performance and risk management of the banking sector in GCC countries, especially in times of crisis and pandemics.

This study explores the implications of merging two fundamentally different types of banks: Islamic and conventional banks. The research aims to provide insight into the unique opportunities and challenges presented by such a merger and to offer strategic guidance for future mergers. A balanced scorecard-based strategic analysis using a Quantum Spherical Fuzzy Decision-Making Approach was used to develop short- and long-term strategic plans for the merged bank. The balanced scorecard included 12 key performance indicators (KPIs) in 4 groups, and the methodology incorporated several questions to guide the analysis. The results of the study offer valuable insights into the potential opportunities and challenges of merging these two types of banks, as well as strategic recommendations for stakeholders at all levels. The study serves as a useful guideline for future mergers between similar or different types of banks. Overall, the findings suggest that a well-planned merger strategy is essential for avoiding challenges and maximizing the benefits of merging Islamic and conventional banks. By integrating the strengths of both types of banks, a merged entity could create a competitive advantage and potentially improve financial performance. However, this requires careful consideration of cultural differences, regulatory challenges, and other factors that could impact on the success of the merger.

Purpose This study aims to see the variables of customer satisfaction level, attractiveness of alternatives, subjective norms and level of religiosity of conventional bank customers in West Java and their effect on switching intentions. Design/methodology/approach A causality description technique with a quantitative approach is used in this research. The analytical technique used is partial least square-structural equation modeling with a sample of 320 respondents from conventional bank customers in West Java. Findings The results revealed that the level of customer satisfaction and subjective norms were in the medium category, whereas the level of alternative attractiveness, religiosity and switching intentions was in high level. The level of customer satisfaction harms switching intentions, whereas the level of alternative attractiveness and religiosity variables have a positive effect on switching intentions. In contrast, the subjective norm variable does not affect switching intentions. Therefore, customer satisfaction, the attractiveness of alternatives and religiosity are essential points to cause someone to have the intention to switch. Practical implications For stakeholders, especially the government or the Islamic banking industry, to improve the climate of the Islamic finance industry in Indonesia, in particular, to increase knowledge and insight from the public regarding the intention to switch conventional bank customers to Islamic banks. Originality/value The use of the religiosity variable as an independent variable on switching intentions is still rarely done. Hence, the authors combine this variable with customer satisfaction, alternative attractiveness and subjective norms. The update in this study also places conventional bank customers included in the millennial generation and generation Z categories who live in the province of West Java as research subjects.

Effective governance is crucial in enhancing public and investor trust by ensuring that the financial statements issued by banks are accurate. This is achieved through the implementation of active anti-fraud measures in relation to voluntary ethical disclosures and financial reporting. This study aims to examine the impact of corporate governance and voluntary ethical disclosure on financial reporting in the banking sector in Indonesia during the COVID-19 pandemic. The study uses a quantitative approach focusing on a panel study of 120 banks listed on the Indonesia Stock Exchange from 2019 to 2022, with particular attention to the pandemic period. The main focus of this study includes various aspects of corporate governance, such as independent audit committees, audit committee members’ qualifications, meeting attendance, audit committee and board of commissioners’ size, audit committee independence, directors’ independence, and internal audit effectiveness. The results show that Committee Meeting Frequency, Audit Committee Size, and Independent Director Board influence voluntary ethical disclosure, as well as Independent Audit Committee, Audit Committee Meeting Frequency, Audit Committee Size, Commissioner Board Size, Independent Director Board, and Internal Audit Effectiveness in mitigating financial statement fraud. Quantitatively, increased audit committee effectiveness and board independence raise voluntary ethical disclosures by 15%, while simultaneously reducing fraudulent financial reporting by 12%. Furthermore, banks with stronger corporate governance mechanisms demonstrate higher-quality financial reporting than those with weaker governance structures.

This study investigates the impact of content duration and subtitles in TikTok Live marketing on electronic word-of-mouth (eWOM) for halal fashion products. Utilizing a quantitative approach, we analyzed 161 videos from 49 TikTok accounts promoting halal fashion between October 1-14, 2023. The methodology included Structural Equation Modeling (SEM) with Partial Least Squares (PLS) analysis via SmartPLS software. Findings indicate that longer video durations negatively affect eWOM (path coefficient - 0.368, P-value 0.022), while subtitles have a positive but statistically insignificant effect (path coefficient 0.453, P-value 0.058). User engagement metrics revealed high levels of “Likes” and “Saves,” but low comment rates, suggesting a passive consumption pattern. These results highlight the necessity for halal fashion marketers to focus on shorter videos with engaging visual elements to enhance user interaction and eWOM potential on TikTok. This research contributes to digital marketing literature by providing actionable insights for developing effective social media strategies tailored to the halal fashion sector in Indonesia, a rapidly growing market with significant opportunities for innovation and consumer engagement.