A lot of previous research studied the relationship between audit committee quality and the financial performance of conventional banks before and during the subprime crisis, whereas some other investigations analyzed the same association in the framework of Islamic banks. However, no study has compared these two correlations either before, during, or after the subprime crisis. Several reasons explain the differences, such as the audit committee quality of each bank type, the evaluation method of the financial performance, the research peculiarities, the methodology, the data, and the interpretation. This research aims to compare the impacts of the audit committees’ quality on the financial performance of Islamic and conventional banks between 2010 and 2019. The financial performance measures and audit committees’ determinants of the conventional and Islamic banks concerned 112 banks of each type. The collected data covered four continents: America, Asia, Africa, and Europe. Impacts were compared by using the Generalized Least Squares analysis. The results showed that the audit committee reduced the profitability of two bank types. Moreover, it harmed the conventional banks’ efficiency but reported an unclear effect within Islamic banks. Even so, we noticed that the audit committee had a positive impact on the conventional banks’ liquidity, while the same effect was apparently ambiguous for the Islamic banks’ liquidity. For solvency, the audit committee positively influenced conventional banks while it affected that of Islamic banks.

According to the literature of corporate governance, ownership structure is advanced as a non-dissociable mechanism of control intended to follow the stakeholders and especially used by shareholders to monitor the conflicts of interest and the opportunistic behavior of managers. Several previous studies have focused on the impact of ownership structure on financial performance separately in conventional or in Islamic banks. However, the comparative studies between these two impacts are non-existent. In this research, we compared the impacts of this governance mechanism on the financial performance in the two types of banks by using the Ordinary Least Squares method. Data relating to financial performance and ownership structure of banks come from 16 countries. Two samples were collected: the first one included 63 conventional banks, whereas the second one integrated 63 Islamic banks whose data are available over the period (2010-2018). Panel results showed that partial effect of each determinant of ownership structure on each measure of financial performance varied from one banks’ type to another and from one performance measure to another. Besides, the reconciliation of similar models revealed many differences between the same impacts’ signs. Therefore, we concluded that in both banks’ types the ownership structure has a positive impact on the financial performance. While, the negative part of the same impact is less significant in Islamic banks. JEL Classification:  F33, G20, G21, G24, G30.

The consequences of the Subprime Crisis have shown a serious deficiency in the financing structures of conventional and Islamic banks resulting from frequent resilience. Specifically, the paper argues that large banks that relied primarily on wholesale external funding, such as resources from other banks, money market funds and treasuries of multi-national companies, have been hit hard by the effects of the Crisis. Conversely, banks that relied mainly on deposits from companies or individuals have weathered the Crisis very well because of the interdependent relationships in the banking and foreign exchange markets. Although the two types have suffered the effects of the Crisis, previous comparative studies between the liquidities of conventional and Islamic banks have produced inconclusive results. This brings us to compare their liquidities during a financial stable period (2010–2018) and to provide a more accurate answer using a new original methodology. Based on two populations encompassing all the classical and Islamic banks in the concerned countries, we chose two samples. After a conditional selection of the observations and a filtering process, the sizes were reduced to the value of 63 banks in each sample. Therefore, we have found that Islamic banks are more liquid than their conventional counterparts.

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