Graduation Year
Spring 2014
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics-Accounting
Reader 1
Marc Weidenmier
Reader 2
Eric Hughson
Terms of Use & License Information
Rights Information
© 2014 Manasvini Ravishankar Ms.
Abstract
Abstract
Islamic Banking, a growing banking segment related consistent with Sharia law and principles. Since its establishment in 1983, the use of Islamic Banking has grown rapidly in Malaysia as a result of the Malaysian government active effort to make “Malaysia, Asia’s Islamic finance hub.” This study investigates the impact of various regulation changes – applicable to both conventional and Islamic Banking – in Malaysia, on the volume of financing of Islamic Banks. The main way to accommodate for possible omitted variable bias was by including control variables including the production index, real effective exchange rate, price index against the return on assets, return on equity and net income margin ratio. This study was conducted using an autoregressive-distributed lag model, and an event study. Ultimately, the abnormal returns for Islamic vs. Conventional Banks – though statistically significant individually during the event studies, on average were not statistically significant. The implication is that were the sample size to be larger, we may be able to find more statistical significance, but given that the bank population in Malaysia is so small, it is hard to find a statistically significant trend.
Recommended Citation
Ravishankar, Manasvini Ms., "Effects of Regulatory Change on Stock Prices and Profitability of Islamic and Conventional Banks in Malaysia" (2014). CMC Senior Theses. 952.
https://scholarship.claremont.edu/cmc_theses/952
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
