Impact of financial development initiatives on the banks’ financial performance: comparative study in the stakeholders’ theory framework

Achraf Haddad ()
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Achraf Haddad: Higher Institute of Technological Studies of Mahdia

SN Business & Economics, 2023, vol. 3, issue 1, 1-27

Abstract: Abstract The importance of the banks’ development degree is a recent theme that has not been extensively explored before in comparative studies between classical and Islamic banking within the stakeholders’ theory which are almost non-existent. Although this variable can become a good external governance mechanism, its impact on the financial performance (FP) of classical and Islamic banks may be a recent subject. The research aim is to make an epistemological comparison between the impacts of Financial Innovation and Development Initiatives (FIDIs) in supervising the financial performance (FP) of classical and Islamic banks within the framework of stakeholder theory. In this study, I tested if the FIDIs can become an external governance mechanism that can positively or negatively influence the Islamic and conventional banks’ FP. Study variables are collected from 76 countries located in 5 continents. For each bank type, the datum concerns 210 banks over the period (2010–2020). The empirical results revealed that the FIDIs improved the Islamic banks’ FP. In contrast, conventional banks’ FIDIs negatively affected their FP. My research results are a valuable knowledge reference for the banking sector stakeholders and financial intermediaries, especially in the case of banks’ planning and development.

Keywords: Financial innovation and development initiatives (FIDIs); Conventional banks (CBs); Islamic banks (IBs); Financial performance (FP); Stakeholders’ theory (search for similar items in EconPapers)
JEL-codes: E42 F37 G34 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s43546-022-00393-1

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