Islamic banks, as their charters require, should share their profits and losses with their customers through equity financing; but they do mark-up financing instead, which is similar to bank loans. Theoretically, one of the reasons is Islamic banks operate in poor contracting environments where...

We model two regimes using threshold cointegration and threshold vector error correction model for sovereign CDS and equity markets of thirteen emerging markets. We document evidence of momentum in cointegration relationships in CDS and equity markets of all countries. We find that positive and...

Purpose –ASEAN region has emerged as a major hotspot for banking mergers and acquisitions (M&A) in Asia. This paper aims to examine the determinants of acquisitions for 47 acquired banks and 33 acquiring banks in ASEAN from 2003 to 2011 by applying matching strategy....

Islamic bonds (Sukuk) emerged as an innovative capital market instrument over the last decade. This paper investigates the impact of conventional bonds and Sukuk announcement on shareholder wealth and their determinants using 79 Sukuks and 87 conventional bonds over the period of 2004e2012 in...

Purpose – This paper aims to examine whether bank regulation, supervision and monitoring enhance or impede technical efficiency and risk-taking behaviour of Islamic banks across the globe. Design/methodology/approach – Technical efficiency scores are calculated using the data envelopment...

Purpose – The paper aims to gain an insight into behavioural characteristics of Islamic banks and how they influence the risk-taking decisions of Islamic banks in financial markets within the prospect theory context. Design/methodology/approach – The study employs review and application of...

This study investigates the linkages between the banking regulatory and supervisory structures associated with the pillars of Basel III and the risk taking of banks. Given a well-established set of theoretical priors, the regulations considered in this study are official supervisory power,...