Assets Evaluation Methods Differentiation and Profitability in Kuwait Islamic Banks

International Journal of Business Society, Vol. 6, Issue 3
Naser Abdullah Hammad AlazemiEngku Rabiah AdawiahAshurov Sharofiddin
Fair valueCost modelIslamic BanksKuwait
PDFRegular IssueDOI: 10.30566/ijo-bs/2022.03.84
6Volume
3Issue

Abstract

This study aims to evaluate the impact of adopting whether fair value model or cost model on the profitability of the Islamic banks’ sector in Kuwait. The quantitative approach is used to construct the adopted methodology. The population of the study is the Islamic banks that are listed in the Kuwait security market. The sample of this study composites 6 Islamic banks operating in Kuwait. The data source of this study was retrieved from the audited annual report listed in the Kuwait security market. The data used is over the period 2014 and 2020. The finding of this study revealed a significant relationship between both models on the Islamic banks’ sector profitability. Also, no significant difference is found in profitability among the natural Islamic banks that follow either the fair value model or the cost model. It recommends this study to the Islamic banks to report their investment at fair value, agreeing with IAS40.

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Article Information

Article Details
Volume & IssueVol. 6, Iss. 3
Publication DateMar 30, 2022
Authors
Naser Abdullah Hammad Alazemi
Engku Rabiah Adawiah
Ashurov Sharofiddin
DOI
10.30566/ijo-bs/2022.03.84
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