arbiter
JournalsPricingAccount

Does corruption affect the profitability of Islamic banks?

Iwona Soból & Łukasz Dopierała

Journal of International Studies2025https://doi.org/10.14254/2071-8330.2025/18-2/5article
AJG 1
Weight
0.37

What the paper says

The impact of corruption on the profitability of Islamic banks is ambiguous. This study aims to clarify this relationship by using a global sample of 240 banks from 41 countries over the period 2012-2023. The study employs both dynamic and static panel data models, using the Corruption Perception Index as the key corruption measure, and includes various control variables. Our findings indicate that changes in corruption levels significantly affect the profitability of Islamic banks. Increased corruption is associated with a decrease in banks’ ROAA and ROAE. This implies the necessity for policymakers to establish and enforce robust measures aimed at deterring Islamic banks from participating in corrupt practices. Additionally, we recommend that Islamic banks proactively develop a robust governance framework to prevent and combat corruption effectively. The findings remain consistent under various model specifications and highlight the importance of addressing corruption to enhance the financial performance of Islamic banks.

1 citation

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.14254/2071-8330.2025/18-2/5

Or copy a formatted citation

@article{iwona2025,
  title        = {{Does corruption affect the profitability of Islamic banks?}},
  author       = {Iwona Soból & Łukasz Dopierała},
  journal      = {Journal of International Studies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.14254/2071-8330.2025/18-2/5},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Does corruption affect the profitability of Islamic banks?

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.