Author(s): Khaldoun Al-Qaisi, Mahmoud Odeh, Emad Nawayiseh, Tarek Al-Mubaidain
The paper seeks to investigate the impacts of ownership structures on the Islamic Banks or IBs performance in numerous regions especially in the Middle East and North Africa or MENA, in Europe, and in other different Asian countries through the application of the agency theory as being an “Analytical Framework”. The study timeframe is ten consecutive years thus from the year 2006 to 2015. In order to measure performance, the study will use the Return on Average Asset (ROA), the Return on the Average Equity or ROAE, and the Net Income Margin or NIM. This ownership structure was indeed operationalized through the terms of “ownership concentration” or the percentage of the share that was held by top shareholders as well as the ownership identities of the identity of topmost shareholders. The results that emanated from the study suggested that there was nearly no relationship that existed the concentration of ownership and the performance of IB before, during, and even after the 2008/2009 Financial Crisis. The identity of ownership may this be associated to the performance of IB, and thus depicting that there was not only a positive but also a “statistically significant relationship” that prevailed between the IBs that were family owned and performance as well as the managerial IBs and controlled IBs.