Title: The effect of capital structure on banking performance: a meta-analytical approach

Authors: Houda BenMabrouk; Ikbel BenAbdessalem

Addresses: GFC Laboratory, University of Sousse, HEC Sousse, Tunisia ' HEC Sousse, University of Sousse, Tunisia

Abstract: This paper studies the relationship between banking capital and performance through a systematic review. We perform the meta-analysis technique on 66 papers for a 57-year period that spans from 1958 to 2015. Using the random effect model and the Hedges' g measure, the results show that the capital structure does not affect banking performance, which confirms the Modigliani and Miller (1958) findings. However, the meta-regression indicates that the relationship between banking capital structure and performance is significantly associated to the proxy of capital structure, the performance indicator, the banking type (conventional versus Islamic) and the context of the study (developed versus emerging). Finally, the results indicate that Islamic banks' performance is not affected by capital structure.

Keywords: banking performance; capital structure; meta-analysis; meta-regression.

DOI: 10.1504/GBER.2022.125750

Global Business and Economics Review, 2022 Vol.27 No.3, pp.303 - 323

Received: 19 Jul 2021
Accepted: 04 Nov 2021
Published online: 27 Sep 2022 *

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