Valuation of the Capital Assets Pricing Model on the Islamic Retails Banks in Bahrain
subject: Bahrain; Beta; C3; CAPM; E5; G11; G12; G2; Islamic retail banks; Regression; T-test
description: The Gulf countries are rapidly changing after the coronavirus pandemic. It has many notable impacts on the banking sectors especially in the Islamic retail banks. This study has focused on the valuation of the Islamic retail banks in Bahrain. There are only six Islamic retail banks that follow Shariah rules and regulations. This paper consists of the monthly data from July 2016 to June 2021. The CAPM model has been applied for the valuation of Islamic retail banks and the multiple regression method run for the impact of Islamic retail banks on the Bahrain Bank index during the period. The outcomes of CAPM have identified overvalued BISB, Baraka, Salam, KHCB, and ITHMR except for the KFH, which is undervalued. The significant results have found the relationship between the six retail Islamic banks and the Bahrain banks index in Bahrain. The interpretation of t-statistics shows a substantial difference between the CAPM and actual returns of Islamic retail banks in Bahrain. The banking system will be a modern economic world which helps to create the nation. The nation will develop if society will be aware about financial literacy and analytics. This paper will help the industrialist, practitioner, brokers, promoters, and investors. The Author(s), under exclusive license to Springer Nature Switzerland AG 2025.
creator: Shaikh, Zakir Hossen; Mohammad, Irfan; Nomran, Naji Mansour; Anto, Manolo Logrono
source: Studies in Big Data;Volume;171;pp.495-506
publisher: Springer Science and Business Media Deutschland GmbH
date: 01-01-2025
rights: Restricted Access; Hardcopy may be available in the library
relation: ISSN: 21976503;
language: English
type: Book chapter
coverage: Shaikh Z.H., Department of Finance and Accounting, College of Business Administration, Kingdom University, Riffa, Bahrain; Mohammad I., Christ University, Bangalore, India; Nomran N.M., Department of Finance and Accounting, College of Business Administration, Kingdom University, Riffa, Bahrain; Anto M.L., Department of Business Management, College of Business Administration, Kingdom University, Riffa, Bahrain