This paper employs non-parametric cost efficiency analysis using data envelopment analysis (DEA) and ratio analysis on a cross country sample of Islamic banks to examine their profitability and economic efficiency and then compares these results with their involvement in Islamic finance. Using a sample of 20 banks from 11 countries, we had anticipated that those banks more active in Islamic transactions would be more successful, but no obvious pattern was found between the profitability, Islamic financing and efficiency. These findings, however, may more reflect the differing stages of development across the banks concerned, their regulatory environments, and other country specific matters rather than the impact of their Islamic practices.
CITATION STYLE
Brown, K., & Skully, M. (2009). Ethical Investments and Performance of Islamic Banks. Journal of Islamic Economics, Banking and Finance, 5(1), 59–72.
Mendeley helps you to discover research relevant for your work.