Intangible assets disclosure and its impact on fair value in the banking sector : a comparative analysis between conventional and Islamic banks

Barrak, Jasim Idan (2019) Intangible assets disclosure and its impact on fair value in the banking sector : a comparative analysis between conventional and Islamic banks. PhD thesis, University of Bolton.

[img]
Preview
Text
Jassim Al Suwaidi PhD thesis 2018.pdf - Submitted Version

Download (9MB) | Preview

Abstract

Over the last decades, due to the need for high quality financial information, the economy has generally moved from being industrial-based towards being more knowledge-based and, as a result, the intangible assets have become one of the crucial factors in promoting the value of firms. Accordingly, it can be stated that the intangible assets of the firm are the key factors for sustaining competitive advantage. Based on such awareness, the issues related to intangible assets become the focal concern for many industries, including the banking sector, as banks play an important intermediary role in the financial industry through which they transfer savings into productive investments. However, the issue of intangible assets could have more impact in the case of Islamic banks as their operations are based on Islamic financial principles that are derived from Islamic law. The reason for such expectations is that such adherence to Islamic law embeds the moral and ethical aspects in their business activities, which is considered the key intangible assets in attracting customers that wish to conduct their financial activities according to their belief. Therefore, this research aims to measure the disclosure of intangible assets and assess the impact of such disclosure on the fair value of Islamic banks compared to conventional banks. In order to fulfil the research aims, this research applies the content analysis to measure the level of intangible assets disclosure and utilises the regressions analysis to examine the impact of intangible assets disclosure on the fair value of examined banks. The research sample consists of 44 banks from the GCC region, where 22 are Islamic banks and 22 are conventional banks covering the period from 2006 to 2016. The key contribution of this study derived from bridging the existing gaps in the literature through providing empirical evidences that suggest that Islamic banks disclose higher level of intangible assets compared to conventional banks. The research outcomes, further, confirm that the disclosure of intangible assets has a positive and significant impact on fair value of the examined banks. In addition, this study empirically confirms that the extent of association between the disclosure of intangible assets and fair value is higher in the case of Islamic banks compared to conventional banks in the GCC region during the examined period. Accordingly, it can be stated that the outcomes of this research are consistent with the developed hypotheses and discussion of the theoretical framework. Therefore, it can be argued that this research study has been successful in achieving the research aims and objectives.

Item Type: Thesis (PhD)
Additional Information: Electronic version of the dissertation submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Financial Accounting
Divisions: University of Bolton Theses > Centre for Islamic Finance
Depositing User: Tracey Gill
Date Deposited: 01 Nov 2019 14:48
Last Modified: 01 Nov 2019 14:48
URI: http://ubir.bolton.ac.uk/id/eprint/2602

Actions (login required)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics

>