Essays on the capital structure and insolvency in conventional and non-conventional banking systems

• Main Author: Rajhi, Wassim
• Language: ENG
• Published: Université de Toulon et du Var 2011
• Subjects: [SHS:GESTION] Humanities and Social Sciences/Business administration; Capital Structure; Financial Econometrics; Governance; Insolvency
• Online Access: http://tel.archives-ouvertes.fr/tel-00657342; http://tel.archives-ouvertes.fr/docs/00/65/73/42/PDF/ThA_se_Rajhi.pdf

The international financial crisis naturally prompts the question of whether IIFS are robust and resilient or may be swept into crisis by a global wave and if so through what channels. This thesis considers channels through which the world financial crisis would affect IIFS, their features that may help contain it and those that may foster post crisis recovery in a dual banking system. Our sample covers 467 conventional banks and 90 Islamic banks in 16 countries for the period 2000-2008, a range advanced economies and emerging markets. We estimation the financial stability (z-score) in conventional and Islamic banks. The z-score has become a popular measure of bank soundness (Boyd and Runkle, 1993; Maechler, Mitra, and Worrell, 2005; Beck and Laeven, 2006; Laeven and Levine, 2006; Hesse and Čihák, 2007, 2008, 2010; Mercieca, Laeven and Levine, 2009; Beck; Demirgüç-Kunt and Merrouche, 2010). With a robust and a quantile estimation model, this empirical analysis explores causes of insolvency risk in Islamic and conventional banks in Middle East and North Africa (MENA) and Southeast Asian countries, by controlling for various factors, bank-by-bank data, macroeconomic and other system-wide indicators.