ARTÍCULO
TITULO

Bank Financing and Firm Growth: The Role of Islamic Bank Financing

Mahmoud Al-Rdaydeh    
Joriah Muhammad    
Haslindar Ibrahim    

Resumen

The study examined the influence of Islamic and/or conventional bank financing on the growth of firms. The data were based on 113 firms in a Middle East country ? Jordan ? that implemented a dual-banking system from 2007 to 2016. The finding revealed that the implementation of either type of bank financing, be it Islamic and/or conventional, affect the growth of the firms. The study observed that Islamic bank financing had a more significant effect on the growth of the firms. Following the results of this study, stakeholders, managers, and investors are expected to change their views on Islamic bank financing, which is currently viewed as a part of religious practice. It may lead to the utilization of Islamic bank financing by firms.  It should be noted that this study is one of the first empirical studies on the impact of Islamic bank financing on the growth of firms.Keywords: interest-free credit facility; Islamic finance; conventional loan; firm growth; panel data.JEL Classifications: G 30; G32; C23DOI: https://doi.org/10.32479/ijefi.8278

 Artículos similares

       
 
Hani El-Chaarani, Rebecca Abraham and Georges Azzi    
Banks are financial intermediaries who transform deposits into loans. Banks in the MENA (Middle East and North Africa) region use large deposits from oil companies and big businesses to finance trade, and fund government and private sector infrastructure... ver más

 
Hendrik Suhendri,Risna Ningsih,Irenius Iyel     Pág. 147 - 156
Almost all economic sectors in the world have been affected by the Covid-19 pandemic, including the national banking industry in Indonesia. This study purpose was to examine the differences in the financial performance of State-Owned Conventional Banks a... ver más

 
Siti Maryam Agustina, Nor Norisanti, Faizal Mulia Z     Pág. 1057 - 1073
Currently, the economy in Indonesia and even the whole world is experiencing a crisis and paralysis. This is due to the outbreak of the corona virus which is contagious and one of the industries affected is the Islamic banking industry in Indonesia, espe... ver más

 
Pedro Manuel Nogueira Reis and António Pedro Soares Pinto    
This paper investigates how bank characteristics (market share, principal shareholders, profitability, and size), and the gender of the company?s board members, along with their supervisory abilities, influence the firm?s performance, cost of debt, and l... ver más

 
Yavuz Toraman     Pág. 56 - 66
Since technology benefits people in many areas, its effectiveness is increasing day by day. For this reason, many products and services have been digitized and made available to people. Especially in the last period, with the development of blockchain te... ver más