Abstract
Do principal-principal (PP) conflicts impact the performance of Islamic banking? Using panel data of 37 banks that adopt Islamic banking in ten countries, this paper investigates the existence of PP and PA conflicts to the impact of their performances. Little is known in the literature about these conflicts especially when the issue of PP has been argued as a major conflict and especially prevalent concern in emerging markets but ignored in the Islamic banking research. Results show that PA is the main concern with inconclusive results for PP conflicts.
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