Objective – The aim of the study is to examine the relationship between ownership structure (state ownership, foreign ownership, institutional ownership, and management ownership) and nonperforming loans in the Iraqi banking industry. Methodology – Based on quantitative research, the study adopted an archival research strategy using documents (annual reports) as a source of data. In addition, 31 banks working in Iraq were selected based on panel data with a time frame specified for 2011-2020, with 310 observations. Findings – The study found that three types of ownership foreign, institutional, and managerial, are associated with NPLs negatively, but government ownership is linked to NPLs positively because government-owned banks might have a hard time resisting government interference, which leads to higher risk-taking. Novelty – research conducted on the relationship between ownership structure and non-performing loans mainly has focused on developed nations, and there has been little research on the subject in developing countries. There is a need for research centering on developing nations since studies on this topic in developed economies do not adequately explain the relationship between ownership structure and non-performing loans in these countries. As a result, the present research focuses primarily on Iraq, where a significant credit risk characterizes the banking system compared to other Middle Eastern developing nations. Furthermore, the material on ownership structure is not found in Iraq. Type of Paper: Review JEL Classification: C21, G32, H81, Z33. Keywords: Corporate governance, Ownership structure, Non-performing loans, Iraqi banking industry Reference to this paper should be made as follows: Sadaa, A.M; Ganesan, Y; Yet, C.E. (2022). The Effect of Ownership Structure on the Nonperforming Loans in Iraqi Banks, J. Fin. Bank. Review, 7(1), 86 – 97. https://doi.org/10.35609/jfbr.2022.7.1(6)

PurposeThis study aims to investigate how the timing behavior affects the capital structure decisions of South Asian family firms. A strand of literature is available based on the capital structure of firms in general but inconsistent with family businesses framework and not from market timing outlook. This study looks at the issues from the market timing perspectives of both equity and debt market timing.Design/methodology/approachThe sample of the study is the listed family firms of India, Pakistan and Bangladesh. The firm-level data are collected from Thomson Reuters' DataStream and the ownership data collected from the countries' stock exchanges and financial statements of the family firms.FindingsThe results show that there is strong support for the market timing in the family firms' capital structure. Moreover, the financial crisis of 2007–2009 surprisingly had a positive effect on the capital structure of South Asian family business.Originality/valueThis study looks at the issues from the market timing perspectives of both equity and debt market timing. It provides evidence for supporting the equity and debt market timing effect on the capital structure and financing decision of family firms. It also addresses the impact of the 2007–2009 financial crisis on the capital structure of family firms.

This study aims to examine the connection between corporate governance mechanisms and non-performing loans (NPLs) using agency theory. In addition, the study examines the moderating effect of concentrated ownership (CO) between NPLs and financial distress. The study adopts a sample of 42 Iraqi banks from 2017–2021 with 210 observations. Panel estimation utilised a regression estimator to test the research hypotheses of the study. Three regression models were used to test the hypotheses after obtaining the appropriate model. Our findings showed that non-executive directors, board financial experience, and risk management committee affected NPLs negatively. At the same time, the audit committee was an insignificant effect on NPLs. Moreover, concentrated ownership as moderating interacts with the relationship between corporate governance factors and NPLs. This study enhances the knowledge and implications of the theory used for corporate governance dimensions. It provides feedback and a map through which Iraqi regulators and decision-makers can improve the effectiveness of corporate governance practices in relation to NPLs control, which should enable Iraqi regulators and policymakers to improve the corporate governance system, especially since corporate governance is a new issue in Iraq. The study also offers the researchers, academics, regulators, and policymakers' proof of the detrimental impact of CO on NPLs since this study provided an original contribution by using CO in this position. Therefore, evaluating CO as a moderating function provides several literary and theoretical insights that can be a focusing area of future studies.

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