Profit Distribution Management by Islamic Banks: An Empirical Investigation
Posted: 21 May 2018
Date Written: 2012
The objective of this paper is to ascertain whether Islamic banks do in fact manage profit distributions and if so, what factors are associated with the extent of profit distribution management. The results suggest that most Islamic banks manage profit distributions, with the extent of profit distribution directly related to religiosity, financial development, asset composition, and existence of discretionary reserves, while it is inversely related to market familiarity with Islamic banking, market concentration, depositor funding reliance and the age of the Islamic bank.
Keywords: Earnings management, profit distribution, Islamic banking
JEL Classification: E44, G21, Z12
Suggested Citation: Suggested Citation