*Linear and Non-Linear Financial Econometrics - Theory and Practice*


#### **Table 21.**

*Excluded Variablesa,b from the model between Z score and Liquidity dimension in camel model.*


#### **Table 22.**

*Variables entered/Removed.*


*Source the researcher from data analysis.*

*a Predictors: (Constant), Earning Per Share in dollar, Return on Assets, Return on Equity*

#### **Table 23.**

*Model summary between Z score and Earning Dimension ratios.*


**4.6 Sensitivity dimension**

*Table 27 shows significance of the test. <sup>a</sup> Dependent Variable: Z Score*

*Linear Regression through the Origin*

*Predictors: provision/Gross loan (PGL)*

*b*

*c*

*d*

**317**

**Table 27.** *ANOVAa,b.*

**4.7 External factors analysis**

Only one ratio (provision/gross Loan) is used to measure sensitivity effect on Z score **Table 26** shows model summary, between Z score and sensitivity ratio which indicates that provision to Gross loan ratio interpret 34% of changes in Z score.

*This total sum of squares is not corrected for the constant because the constant is zero for regression through the origin.*

**Model Sum of Squares df Mean Square F Sig.** 1 Regression 439.498 1 439.498 9.127 .004<sup>c</sup>

**Model R R Square<sup>b</sup> Adjusted R Square Std. Error of the Estimate**

*For regression through the origin (the no-intercept model), R Square measures the proportion of the variability in the dependent variable about the origin explained by regression. This CANNOT be compared to R Square for models*

1 .342<sup>a</sup> .117 .104 6.93927225

Residual 3322.591 69 48.153

Total 3762.089<sup>d</sup> 70

*Model summary between Z score and Sensitivity Dimension.*

The researcher used three economic factors as explanatory variables of Z score in Islamic banks, including gross domestic Product Growth rate (GDP), Inflation rate, and exchange rate in Dollar. **Table 29** indicates that exchange rate causes69% of changes in Z score, **Table 30** shows significance of the model, The result of **Table 31** shows that exchange rate affect negatively on Z score in Islamic banks at

**Table 27** shows significance of the test (0.004) (**Table 28**).

**Model Unstandardized**

*DOI: http://dx.doi.org/10.5772/intechopen.95028*

*Coefficients.<sup>a</sup> of the test between Z score and Earning Dimension ratios.*

*Source the researcher from data analysis. Table 25 shows significance of individual variable. <sup>a</sup>*

*Source the researcher from data analysis.*

*Predictors: provision /Gross loan (PGL)*

*which include an intercept.*

*Dependent Variable: Z Score*

**Table 25.**

*a*

*b*

**Table 26.**

**Coefficients**

*Determinants of Islamic Banks Distress in Gulf Council Countries (GCC)*

**B Std. Error Beta**

Return on Assets 121.732 132.351 .181 .920 .361 Return on Equity �5.350 22.077 �.052 �.242 .809 Earnings Per Share in dollar �2.860 .992 �.384 �2.883 .005

1 (Constant) 4.340 1.554 2.793 .007

**Standardized Coefficients t Sig.**

*Source the researcher from data analysis.*

*Table 24 shows significant of the model between Z score and Earning Dimension ratios. <sup>a</sup>*

*Dependent Variable: Z Score*

*b Predictors: (Constant), Earning Per Share in dollar, Return on Assets, Return on Equity*

#### **Table 24.**

*ANOVA<sup>a</sup> test between Z score and Earning Dimension ratios.*

Earning Dimension ratios, but **Table 25** shows significance of individual variable, it indicate that only Earnings Per share (EPS) as Earning indicator affects positively and significantly on Z score. However EPS did not use previously as Earning indicator in reviewed studies. The results of **Tables 23** and **25** show that only Earning per share can affect negatively on Z score at 1% level, however there is no significant effect of ROE&ROA on Z score.
