Research Q: do islamic banks outperform conventional banks in GCC
• No plagiarism
• Use stata as the software to do the instructions given
• Use a panel regression model where you use both cross sectional and time series
• Regress Islamic banks against non-Islamic banks in the following
1) Regression analysis ( as follow )
2) Profitability= B0+B1*Leverage+ B2*Size-+ B3*deposits/total assets+ B4*GDP + B5*IB dummy + residuals
3) In this case;
4) Leverage= Assets/Total capital
5) deposit= security / Total Assets
6) Size= Book value of total assets
7) GDP= Change in GDP growth rate
8) IB dummy= 1 if Islamic bank and 0 if conventional bank
9) B0…B6 = Coefficients of independent variables
10) Efficiency Ratio= Operating expenses / Operating income
11) Use dummy variables 0 for non-Islamic banks 1 for Islamic banks
12) data is provided
Please put years as a variable. In this way, you can improve the number of observations and run panel regressions.
Bank_id Year ROA …
FREE – Data will be provided by the client
1- Focus research question import of types of banks on bank profitability.
2- A- Bank performance
3- Data from 2006 to 2014
Data provided in the attachement.