Bank Performance and the Association Between Accounting Income and the
CAMEL Framework: Evidence from Kuwait

Hewaidy, Aly M.; Elshamy, Mostafa A.; Kayed, Metwally A.

Journal of

Marketing Development and Competitiveness

Scholar Gateway

Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts

Girard (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

Albert-Valette-Florence (p.57-63)

Zhang-Rauch (p. 64-70)

Alam-Yasin (p. 71-78)

Mattare-Monahan-Shah (p. 79-94)

Nonis-Hudson-Hunt (p. 95-106)

JOURNAL OF ACCOUNTING AND FINANCE

Bank Performance and the Association Between Accounting Income and the CAMEL Framework: Evidence from Kuwait

Author(s): Aly M. Hewaidy, Mostafa A. Elshamy, Metwally A. Kayed

Citation: Aly M. Hewaidy, Mostafa A. Elshamy, Metwally A. Kayed, (2020) "Bank Performance and the Association Between Accounting Income and the CAMEL Framework: Evidence from Kuwait," Journal of Accounting and Finance, Vol. 20, ss. 3, pp. 73-85

Article Type: Research paper

Publisher: North American Business Press

Abstract:

The study examines the overall performance of Kuwaiti banks using the CAMEL framework; shows if

accounting income is associated with the CAMEL framework; and compares the performance of commercial banks and Islamic banks. The results of the study indicate that Kuwaiti banks in general have high ratios of capital adequacy, earnings quality, asset quality, and management quality; conventional banks are generally performing better than Islamic banks; and accounting income is highly associated with the CAMEL framework. The later finding implies that accounting income can be used as a proxy to measure banks performance and supports the claims by accounting standards setters that accounting income number has value relevance to users of financial statements. The findings are expected to be useful to regulators and other stakeholders to make better and informed decisions.