Main Article Content
Abstract
This paper provides a review of exit strategy literature that have examined the theories, the impact of exit strategy towards banking performance, both conventional and Islamic, as well as the factors associated with exit strategy activity. The authors have been able to review more than thirty investigations over a twenty-year period, from 1993 to 2017. The study is theoretical and analytical in nature and secondary method has applied. Through a literature review, this study provide an account of the theories and main findings of the literature as well as examines the extent to which exit strategy give impact to the banking performance and highlights some factors contribute to the successfulness of exit strategy activity. Overall, the evidence reviewed suggests that exit strategy affect the conventional and Islamic banks in several different ways. This could be explained by different approaches in handling exit strategy (i.e., domestic or cross border) and various factors contributing to the decision of conducting the exit strategy activity. As far as the development and increase interest in Islamic finance are concerned, it is perhaps surprising that very little empirical research on exit strategy in Islamic banking sector. The paper concludes with several recommendations for future research, the most important of which is the need for a systematic effort on conceptual analysis as well as empirical study on exit strategy in Islamic banking and finance.
Keyword: Exit strategy, theory, bank performance, Islamic banking