Dividend signaling hypothesis and short-term asset concentration of Islamic interest-free banking
Joint Authors
Hassan, M. Kabir
Farahat, Juzif
al-Zubi, Bashir
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2002, Issue 201-240 (31 Dec. 2002)16 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2002-12-31
Country of Publication
Egypt
No. of Pages
16
Main Subjects
Abstract EN
his paper finds that dividend signaling hypothesis is able to explain the phenomenon of assets concentration in short and medium investments in Islamic Interest-Free banking (IIFBs).
In this paper a dividend signaling model framework has been introduced, where in the process of maintaining a stable dividend, mangers of Islamic Interest-Free banking (IIFBs) will prefer to invest in investments that have more certainty about its return, leading to a heavy use of mark-up-pricing, which in turn concentrated on short and medium investments.
The empirical results are found to be consistent with the prediction of our model.
Dividends in Islamic Interest-Free banking (IIFBs) are found to be stable, and bank earnings cashflow is a major source of this stability.
Moreover, there is evidence that the short and medium investments are more important in generating earnings than long-term investments
American Psychological Association (APA)
Farahat, Juzif& Hassan, M. Kabir& al-Zubi, Bashir. 2002. Dividend signaling hypothesis and short-term asset concentration of Islamic interest-free banking. Economic Research Forum : Working Paper Series،Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-968765
Modern Language Association (MLA)
Hassan, M. Kabir…[et al.]. Dividend signaling hypothesis and short-term asset concentration of Islamic interest-free banking. Economic Research Forum : Working Paper Series No. 201-240 (Dec. 2002).
https://search.emarefa.net/detail/BIM-968765
American Medical Association (AMA)
Farahat, Juzif& Hassan, M. Kabir& al-Zubi, Bashir. Dividend signaling hypothesis and short-term asset concentration of Islamic interest-free banking. Economic Research Forum : Working Paper Series. 2002. Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-968765
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references.
Record ID
BIM-968765