TY - JOUR
T1 - Islamic banks and political risk
T2 - International evidence
AU - Belkhir, Mohamed
AU - Grira, Jocelyn
AU - Hassan, M. Kabir
AU - Soumaré, Issouf
N1 - Publisher Copyright:
© 2018 Board of Trustees of the University of Illinois
PY - 2019/11
Y1 - 2019/11
N2 - We investigate the relation between political risk and the volatility of Islamic and conventional banks’ assets. Using an international sample of 34,452 and 1245 bank-year observations of conventional and Islamic banks respectively over the period 1999–2013, we show that conventional banks are more exposed to political risk compared to Islamic banks. Our results are robust to the use of different country-specific factors, sub-sample analysis, alternative measures of asset quality and bank profitability.
AB - We investigate the relation between political risk and the volatility of Islamic and conventional banks’ assets. Using an international sample of 34,452 and 1245 bank-year observations of conventional and Islamic banks respectively over the period 1999–2013, we show that conventional banks are more exposed to political risk compared to Islamic banks. Our results are robust to the use of different country-specific factors, sub-sample analysis, alternative measures of asset quality and bank profitability.
KW - Asset volatility
KW - Hedging
KW - Islamic banks
KW - Political risk
UR - http://www.scopus.com/inward/record.url?scp=85046360971&partnerID=8YFLogxK
U2 - 10.1016/j.qref.2018.04.006
DO - 10.1016/j.qref.2018.04.006
M3 - Journal Article
AN - SCOPUS:85046360971
SN - 1062-9769
VL - 74
SP - 39
EP - 55
JO - Quarterly Review of Economics and Finance
JF - Quarterly Review of Economics and Finance
ER -