The impact of fluctuations in the share prices of Syrian Islamic banks on their technical efficiency

Abstract

The research aimed to test the impact and impact of bank stock price fluctuations on their technical efficiency, for private Syrian Islamic banks listed on the Damascus Stock Exchange. The study population included all three operating Syrian Islamic banks (International Islamic Bank, Cham Bank, and Baraka Bank) during the period (2014-2022).

The closing prices of shares of Islamic banks were relied upon, which were suffering from fluctuations in their values ​​during the period (2014-2022), and the technical efficiency was measured using the DEA method according to the CRS model using the financial intermediation approach in determining inputs and outputs, and the result of the efficiency index was obtained by The DEAP program, through which it was concluded that the average technical efficiency of Islamic banks did not enjoy complete technical efficiency during the period (2011-2022), and that optimal efficiency was the share of the International Islamic Bank..

Using the PM model in the standard study, the research concluded that there was a negative impact of the fluctuations in Islamic banks’ stock prices on their technical efficiency during the period (2014-2022), that is, the lower the stock prices, the higher the efficiency of Islamic banks. This result contradicts the theory of market efficiency, and the explanation for this may be due to the fact that The Damascus market is a weak and inefficient market, and the country has been exposed to crises that have had a negative impact on the way its banks achieve optimal efficiency