Warnindaa, Titi Dewi and Ekaputra, Irwan Adi and Rokhim, Rofikoh,(2019), Do Mudarabah and Musharakah financing impact Islamic Bank credit risk differently? , Research in International Business and Finance, UNSPECIFIED
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Abstract
Extant literature still ponders over the influence of profit-loss sharing financing on Islamic bank
credit risk. Comprehending that Mudarabah and Musharakah as profit-loss sharing financing
retain different features, this study aims to investigate whether they influence credit risk differently.
Specifically, this study intends to analyze whether Mudarabah is riskier than
Musharakah. Additionally, whether Mudarabah and Musharakah non-linearly impact credit risk.
Employing ten-year unbalanced panel data from 63 Islamic banks in the Middle East, South Asia,
and Southeast Asia, we find that Mudarabah is not riskier than Musharakah. Furthermore,
Mudarabah does not show non-linear impact while Musharakah financing exhibits reverse Ushaped
(non-linear) influence on Islamic bank credit risk. Our empirical results suggest that
credit risk reaches its maximum level when the proportion of Musharakah financing is approximately
37–39% of the total bank financing.
Keywords : | Islamic Bank Mudarabah Musharakah Profit-loss sharing financing, UNSPECIFIED |
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Journal or Publication Title: | Research in International Business and Finance |
Volume: | 49 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 17 Dec 2019 05:28 |
Last Modified: | 17 Dec 2019 05:28 |
URI: | https://repofeb.undip.ac.id/id/eprint/314 |