Strategic Islamic Marketing by Unknown

Author:Unknown
Language: eng
Format: epub, pdf
ISBN: 9783030981600
Publisher: Springer International Publishing

3 Empirical Evidence

Based on previous research studying bank performance (Table 10 in the Appendix), this study aims to assess financial performance of Islamic banks.

3.1 Model Specification

A total of 12 variables are divided into internal and external factors. The internal variables include capital structure, liquidity structure, asset quality, and bank size. The external factors are concentration index, interest rate, and inflation rate. Profitability variables of Islamic banking are ROA, ROE, and EVA. The list of variables as well as their explanations and sources are presented in details in Table 11 in the Appendix. The system of equations on panel data can be written as follows:

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