Determinants of bank profitability in the South Eastern European region

By P. P. Athanasoglou, Matthaios D. Delis, Christos Staikouras. Social Science Research Network, 2008

615 citations recorded by the source corpus.

The aim of this study is to examine the profitability behaviour of bank-specific, industry-related and macroeconomic determinants, using an unbalanced panel dataset of South Eastern European (SEE) credit institutions over the period 1998-2002. The estimation results indicate that, with the exception of liquidity, all bank-specific determinants significantly affect bank profitability in the anticipated way. A key result is that the effect of concentration is positive, which provides evidence in support of the structure-conduct-performance hypothesis, even though some ambiguity arises given its interrelationship with the efficient-structure hypothesis. In contrast, a positive relationship between banking reform and profitability was not identified, whilst the picture regarding the macroeconomic determinants is mixed. The paper concludes with some remarks on the practicality and implementability of the findings.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/592ae9a1e22349afb71b97feada4ecd2c67c9621

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Citations in the corpus

Determinants Of Bank Profitability: Evidence From The Greek Banking Sector (2009, methodology): “In banking literature, the profitability variable is most commonly represented by one or both of two alternative measures: the ratio of net profit to equity, ROE, and the ratio of net profit to assets, ROA (Berger and Humphrey, 1997; Ganesan, 2001; Altunbas and Ibanez, 2004; De Young and Rice, 2004;”
What Determines the Profitability of Commercial Banks? ew Evidence from Switzerland (2009, background): “Real GDP growth: GDP growth is expected to have a positive impact on bank profitability according to the literature on the association between economic growth and financial sector profitability (e.g., Demirguc-Kunt and Huizinga, 1999; Bikker and Hu, 2002; Athanasoglou et al., 2008).”
Does market structure matter on banks’ profitability and stability? Emerging vs. advanced economies (2013, neutral): “(2005), Athanasoglou et al. (2006) and Athanasoglou et al. (2008). Also, in the new global economy, there has been an increasing interest in measuring profitability in emerging markets, see e.”
Determinants of Bank Profitability: Evidence from Syria (2014, background): “As for the Greek banking industry, Athanasoglou, Delis, and Staikouras (2006b) reveal that capital (equity-to-asset ratio) is very important in explaining bank profitability.”
Determinants of Islamic and Conventional Banks Performance in GCC Countries Using Panel Data Analysis (2012, methodology): “A study by Athanasoglou et al. (2008) showed that efficient cost management is significant for improving banks profitability.”
Determinants of Bank Profitability—Evidence from Vietnam (2019, neutral): “…been many published articles investigating this topic using cross-country data set (Demirgüç-Kunt and Huizinga 1999; Molyneux and Thornton 1992)(Athanasoglou, Delis, and Staikouras 2006; Goddard, Molyneux, and Wilson 2004; Kosmidou, Pasiouras, and Tsaklanganos 2007; Micco, Panizza, and Yanez…”
Profitability Determinants of Financial Institutions: Evidence from Banks in Pakistan (2018, background): “Apart from European studies, there are many studies on profitability determinants using panel of different emerging countries (Smirlock 1985; Rhoades 1985; Berger 1995a; Short 1979; Bourke 1989; Islam and Nishiyama 2016; Angbazo 1997; Athanasoglou et al. 2006; Micco et al. 2007; Hassan and Bashir 20”