Funding liquidity in Islamic banks: Does the Shariah supervisory board's higher educational attainment matter?

Md Safiullah

Pacific-Basin Finance Journal, 2023, vol. 78, issue C

Abstract: This study investigates whether higher educational attainment (i.e., doctorate degrees) of Shariah supervisory board (SSB) members is relevant to funding liquidity in Islamic banks. Using a firm fixed effects regression framework with data from 63 Islamic banks in 10 countries, we find that higher educational attainment of SSB members increases funding liquidity. We also show that the result holds when we employ subsample analysis for countries with a national-level Shariah regulatory authority, a systematically important Islamic banking sector, and young and small Islamic banks. Our results remain consistent after employing the alternative estimation techniques of change analysis, propensity score-matching analysis, and instrumental variable approach.

Keywords: Funding liquidity; Education; Shariah board; Islamic banking (search for similar items in EconPapers)
JEL-codes: G21 G28 G34 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:78:y:2023:i:c:s0927538x23000422

DOI: 10.1016/j.pacfin.2023.101976

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