Bank-firm equity-based relationships and firm’s performance: evidence from Islamic and conventional banks of OIC countries

Cogent Business & Management

Muhammad Usman¹  Shahbaz Khan²  Nida Baig³  Shahzad Hussain³  Humera Manzoor⁴ 

[1] Department of Business Administration and Economics, University of Education Lahore, Lahore, Pakista;Faculty of Management Sciences, Foundation University Islamabad, Islamabad, Pakista;Fatima Jinnah Women University, Rawalpindi, Pakista;Institute of Business Studies, Kohat University of Science and Technology(KUST), Pakista;

关键词: Bank-Firm Equity-Based Relationships;    Islamic Banks’ Equity Shareholdings;    Conventional Banks’ Equity Shareholdings;    Firm’s Performance;    OIC;    G24;    G32;    L25;   

DOI  :  10.1080/23311975.2021.1974291

来源: Taylor & Francis

【 摘 要 】

We examine the relationship between bank’s equity ownership and corporate financial performance based on cross-sectional data through 2SLS estimation model. Our evidence is based on listed 3203 non-financial firms of 16 Organization of Islamic Conference (OIC) member states with dual-banking system (Islamic and Conventional). Consistent with notion of previous empirical studies, we document a positive impact of both Islamic and Conventional bank-firm equity-based relationships on firm’s performance. The study suggests that the presence of bank equity ownership mitigates agency cost and information asymmetry problems, which in turn increase the firm’s performance. Hence, the market participants such as portfolio managers may consider the role of financial intermediaries during the construction of risk minimization strategies.

【 授权许可】

CC BY