MARKET POWER AND PERFORMANCE: AN ISLAMIC BANKING PERSPECTIVE

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Bahaa Sobhi AbdeLatif Awwad ORCID logo

https://doi.org/10.22495/cocv15i3c1p2

Abstract

This study aims to test the theories of market power and its role in interpreting the performance of Islamic banks in the GCC countries. Based on data from 22 Islamic banks for the period 2012-2017, using standard models, market power theories were unable to explain the returns of Islamic banks in the Gulf. Accordingly, these results deny the existence of an impact of monopoly in the structure of the Islamic banking sector in the performance of this sector, as well as the impact of traditional efficiency in its performance.

Keywords: Market Power, Islamic Banking Sector Returns, Structure Theory-Behaviour-Performance, Traditional Efficiency Hypothesis

JEL Classification: G21, M2, D4, D9

Received: 16.02.2018

Accepted: 04.04.2018

Published online: 27.04.2018

How to cite this paper: Awwad, B. S. A. (2018). Market power and performance: An Islamic banking perspective. Corporate Ownership & Control, 15(3-1), 163-171. https://doi.org/10.22495/cocv15i3c1p2