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2018 | Volume 14 | Issue 3 | 713-724

Article title

An empirical investigation between liquidity and key financial ratios of Islamic banks of United Arab Emirates (UAE)

Authors

Content

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Languages of publication

EN

Abstracts

EN
This paper empirically analyzes the impact of liquidity risk on key financial performance aspects of Islamic banks in the UAE. To document the association between liquidity risk and other performance ratios, time series data are taken for full-fledged Islamic banks working in the UAE from 2000 to 2014. Liquidity ratios and capital adequacy ratios, profitability ratios, and tangibility ratios are determined. Correlation and regression analyses are used to test the study hypotheses using SPSS. The findings indicate that capital adequacy and tangibility ratios are the main factors to determine liquidity risk of UAE Islamic banks. Furthermore, the results showed that the size of Islamic banks’ assets and capital adequacy had a positive and significant association with liquidity risk. Policymakers and Islamic finance experts should devote more attention to enhancing the base of Islamic finance assets to manage liquidity issues.

Year

Volume

Issue

Pages

713-724

Physical description

Dates

published
2018-06-14

Contributors

  • College of Business, Al Ain University of Science and Technology, AL Ain, UAE

References

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Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.mhp-ff26677b-03e8-4558-a25c-12a7a9812678
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