Abstract
According to the literature of corporate governance, ownership structure is advanced as a non-dissociable mechanism of control intended to follow the stakeholders and especially used by shareholders to monitor the conflicts of interest and the opportunistic behavior of managers. Several previous studies have focused on the impact of ownership structure on financial performance separately in conventional or in Islamic banks. However, the comparative studies between these two impacts are non-existent. In this research, we compared the impacts of this governance mechanism on the financial performance in the two types of banks by using the Ordinary Least Squares method. Data relating to financial performance and ownership structure of banks come from 16 countries. Two samples were collected: the first one included 63 conventional banks, whereas the second one integrated 63 Islamic banks whose data are available over the period (2010-2018). Panel results showed that partial effect of each determinant of ownership structure on each measure of financial performance varied from one banks’ type to another and from one performance measure to another. Besides, the reconciliation of similar models revealed many differences between the same impacts’ signs. Therefore, we concluded that in both banks’ types the ownership structure has a positive impact on the financial performance. While, the negative part of the same impact is less significant in Islamic banks.
 JEL Classification: F33, G20, G21, G24, G30.
Highlights
The OS1 has been used in the literature as an internal mechanism of governance (Al-Rassas & Kamardin, 2016; Aminul et al, 2018)
Empirical Method: Discrimination between the Ownership Structure Impact on the Financial Performance of Conventional and Islamic Banks 4.1 Methodological Aspects The methodology applied in our exploratory study is a demonstrative comparison by resorting to modeling
The reality has revealed mixed results, all depend on the performance measure, and the degree of partial impact varies from one OS determinant to another and from one performance parameter to another for the same control variable
Summary
The OS1 has been used in the literature as an internal mechanism of governance (Al-Rassas & Kamardin, 2016; Aminul et al, 2018). Numerous studies in the area of governance analyzed the structural impact of ownership as an implicit control mechanism that can affect the strategic. Vol 4, No 2; 2019 decisions of banks and directly affects their FP (Ozer & Yamak, 2000). In this context, Iannotta et al (2007) defined the OS as the distribution of voting rights between the different shareholders. It can be seen through two main dimensions: the ownership concentration degree and the owners’ nature
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