A SYSTEMATIC LITERATURE REVIEW ON THE CAPITAL STRUCTURE OF ISLAMIC BANKS USING THE PRISMA
Sulaiman Musa , Abubakar Ibrahim Ayuba and Nura Idris
Volume 3 Issue 2
Abstract
The purpose of this study is to critically evaluate theoretical and empirical research into capital structure practices in Islamic Banks (IBs) from four perspectives, namely the theoretical aspect and its nature, the determinants of capital structure in IBs, the links between capital structure and risk management and the nexus between capital structure and the performance of IBs. The authors reviewed and examined past studies on IBs' capital structure from both theoretical and empirical research using the PRISMA approach. It was discovered that most of the literature on the IB capital structure is largely theoretical than empirical. Existing studies have various limitations, which suggest a need for detailed empirical work. Detailed empirical research in the field of capital structure will support bank managers and policymakers in making decisions about improving capital structure. This study will contribute to addressing literature gaps on the IB capital structure. Furthermore, the study identified areas for future research into capital structure practices and IB financing decisions. Lastly, the study will equip regulators with guidelines to establish sound capital requirements for IB. Keywords: Capital structure, Islamic Banks, PRISMA approach
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