Do Principal-Principal or Principal-Agent Conflicts Impact the Performance of Islamic Banking?

15 Pages Posted: 19 Sep 2011

See all articles by Sazali Abidin

Sazali Abidin

Lincoln University (NZ); University of Waikato - Department of Economics and Finance

Date Written: September 19, 2011

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.

Keywords: principal-principal, principal-agent, performance, Islamic, banking

JEL Classification: J15

Suggested Citation

Abidin, Sazali, Do Principal-Principal or Principal-Agent Conflicts Impact the Performance of Islamic Banking? (September 19, 2011). Available at SSRN: https://ssrn.com/abstract=1930105 or http://dx.doi.org/10.2139/ssrn.1930105

Sazali Abidin (Contact Author)

Lincoln University (NZ) ( email )

PO Box 85084
Ellesmere Junction Road/Springs Road
Lincoln, 7647
New Zealand

University of Waikato - Department of Economics and Finance ( email )

Private Bag 3105
Hamilton, 3105
New Zealand

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