Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245128 
Year of Publication: 
2021
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 8 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2021 [Pages:] 1-28
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
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.
Subjects: 
Bank-Firm Equity-Based Relationships
Islamic Banks&#x2019
Equity Shareholdings
Conventional Banks&#x2019
Equity Shareholdings
Firm&#x2019
s Performance
OIC
JEL: 
G24
G32
L25
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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