Open AccessDETERMINANTS OF ISLAMIC BANK’S LEVERAGE RATIO IN MALAYSIA
Author(s) -
Noor Fadhzana Mohd Noor
Publication year - 2018
Publication title -
management and accounting review/management and accounting review
Language(s) - English
Resource type - Journals
eISSN - 2600-7975
pISSN - 2550-1895
DOI - 10.24191/mar.v17i1.761
Subject(s) - leverage (statistics) , debt to capital ratio , islam , estimator , profit (economics) , econometrics , business , economics , monetary economics , statistics , microeconomics , mathematics , finance , geography , equity ratio , return on equity , archaeology , stock exchange
This study examines the relationship between leverage ratio, bank’s performance, size and profit equalisation reserve. Using GMM estimators, both difference and system, we find significant relationship between current leverage ratio and previous leverage ratio and profit equalization reserve. Overall, our results are consistent with the several past literatures with addition of determining impact of profit equalization reserve on leverage ratios of Islamic banks in Malaysia.