Mehak Rehman
This study aims to investigate the influence of capital structure on profitability in the context of conventional and Islamic banks of Pakistan. This study also examines the difference in profitability of conventional and Islamic banks. Panel data were extracted from archival records of conventional and Islamic banks of Pakistan for 10 years (i.e., from 2009/10 to 2018/19). The analysis of a fixed-effect estimation model suggested that capital structure of conventional and Islamic banks of Pakistan has a significant positive correlation with profitability. The results show a substantial difference in the profitability of conventional and Islamic banks of Pakistan.