The Impact of Ownership Concentration on Bank Profitability: Is the Effect Linear or Non-Linear? An Empirical Evidence For Turkey

Mustafa KEVSER; Mesut DOĞAN

doi:10.14666/2194-7759-10-2-001

The Impact of Ownership Concentration on Bank Profitability: Is the Effect Linear or Non-Linear? An Empirical Evidence For Turkey

Authors

Mustafa KEVSER Bandırma Onyedi Eylül University
Mesut Doğan Afyon Kocatepe University

DOI:

https://doi.org/10.14666/2194-7759-10-2-001

Keywords:

Corporate governance, ownership concentration, financial performance, banking sector, Borsa Istanbul

Abstract

In this study, the linear/non-linear impact of ownership concentration (OC) on financial performance was investigated. In this context, the data of 8 deposit banks trading at BIST were analyzed with a fixed-effects model over the period 2005-2020. In the research study, the return on assets ratio (ROA) and return on equity ratio (ROE) were used as financial performance indicators. According to the research results, OC had negative linear impacts on both ROA and ROE. These impacts had higher significance in the four largest banks. Moreover, the interaction between OC and bank size is significant that bank size affect ROA positively. Furthermore, the ownership concentration of the banks subject to the study was determined.

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Author Biography

Mesut Doğan, Afyon Kocatepe University

Assoc. Prof. Dr. Mesut Doğan works as an Associate Professor at the Department of Business Management at Afyon Kocatepe University. He is interested in the fields of research such as; financial performance, financial management, financial analysis, capital markets, corporate governance.

Published

2021-10-22

How to Cite

KEVSER, M., & DOĞAN, M. (2021). The Impact of Ownership Concentration on Bank Profitability: Is the Effect Linear or Non-Linear? An Empirical Evidence For Turkey. Journal Global Policy and Governance, 10(2), 3-20. https://doi.org/10.14666/2194-7759-10-2-001

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Issue

Vol. 10 No. 2 (2021)

Section

Papers

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