Sabri Mohammad

This study aims to explore and examine the liquidity risk that Islamic banks are exposed to in a comparison with conventional and hybrid banks in the case of 145 commercial banks for the period of 1996–2015. This study also examines the factors determining the liquidity risk exposure of the sampled banks by employing a panel data regression model with the random effect technique by considering bank specification, macroeconomy, governance and ownership-related variables. The findings for the sampled banks demonstrate that Islamic banks are more exposed to liquidity risk than conventional and hybrid banks. In addition, the results show that the stringency of capital regulations and credit risk have a negative and significant impact on liquidity risk. Moreover, the results demonstrate that liquid assets and long-term debts are positively associated with liquidity risk exposure. While the empirical results show that long-term debt significantly affects liquidity risk, the results indicate an insignificant impact of liquid assets on the liquidity risk exposure of the sampled banks. The results also depict that bank size, governance and ownership concentration as well as GDP are important control variables in reducing the liquidity risk exposure of Islamic banks.

This paper examines the relationship between corporate social responsibility (CSR) and financial performance for Islamic banks in the Gulf Cooperation Council (GCC) region over the period 2000–2014 by generating CSR related data through disclosure analysis of the annual reports of the sampled banks. The findings of this study indicate that there is a significant positive relationship between CSR disclosure and the financial performance of Islamic banks in the GCC countries. The results also show a positive relationship between CSR disclosure and the future financial performance of GCC Islamic banks, potentially indicating that current CSR activities carried out by Islamic banks in the GCC could have a long-term impact on their financial performance. Furthermore, despite demonstrating a significant positive relationship between the composite measure of the CSR disclosure index and financial performance, the findings show no statistically significant relationship between the individual dimensions of the CSR disclosure index and the current financial performance measure except for ‘mission and vision’ and ‘products and services’.
Similarly, the empirical results detect a positive significant association only between ‘mission and vision’ dimension and future financial performance of the examined banks.