Case Study of the Relationship between Islamic Finance Modes and Financial Performance in Malaysia
Mahmoud Khalid Almsafir, Abdullah Masoud ALHarthi

Abstract
The empirical results of the long run and short run relationship between the Islamic financial model and financial performance in Malaysia are investigated. The results showed that the optimal lag length detected depends on the lowest values of the different tests. The result of unit root test for Bank Islam Malaysia case is confirmed that all variables are stationary. The indication of long run result meant that an increase in these indicators will lead to increase the Return of Assets for all variables. While in the short run, the results showed that the Islamic finance products are positively associated with the Return of Assets for all variables. The Return of Assets model for Bank Islam Malaysia case is stable in the long run parameters.

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