The Impact of Ownership Concentration on Bank Profitability: Is the Effect Linear or Non-Linear? An Empirical Evidence For Turkey
DOI:
https://doi.org/10.14666/2194-7759-10-2-001Keywords:
Corporate governance, ownership concentration, financial performance, banking sector, Borsa IstanbulAbstract
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.
Downloads
Published
How to Cite
Issue
Section
The authors when submitting their papers endorse and give permission as well to the Publisher Transition Academia Press to publish the article/paper in print and/or electronic format. Article/paper is defined as the final, definitive, and citable Version of Record, and includes the accepted manuscript in its final form, including the abstract, text, bibliography, and all accompanying tables, illustrations, data.
If/when an article is accepted for publication, Author will be asked to transfer copyright of the article to Transition Academia Press. Transition Academia Press will retain copyright of all published material and reserves the right to re-use any such material in any print and/or electronic format. Author willing to retain their copyright from the Editors might request a fair condition, on the base of a bilateral agreement.