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

Mustafa Kevser () and Mesut Doğan ()

Journal Global Policy and Governance, 2021, vol. 10, issue 2, 3-20

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.

Keywords: Corporate governance; ownership concentration; financial performance; banking sector; Borsa Istanbul (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ase:jgpgta:v:10:y:2021:i:2:p:3-20:id:430

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