Assessing The Relationship Between Liberalization, Ownership And Performance: The Case Of Turkish Banks

Isik, Ihsan; Gunduz, Lokman; Kılıç, Osman; Uysal, Doğan

doi:10.19030/iber.v3i1.3653

Cited by 5 publications

(2 citation statements)

References 30 publications

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“…Gunduz and Tatoglu (2003) examine nonfinancial firms listed on ISE. Isik et al (2004) study Turkish banks during the period between 1981 and 1990. Other studies document similar positive results (Boubakri et al, 2005;Khawar, 2003).…”

Section: Jaar 212 204mentioning

confidence: 99%

“…It is argued that foreign involvement in the ownership of a firm might have different effects on firm performance. Several studies have investigated the association between foreign ownership and firm performance around the world and at different periods of time (Akimova and Schw€ odiauer, 2004;Arouri et al, 2014;Aydin et al, 2007;Douma et al, 2006;Goethals and Ooghe, 1997;Gunduz and Tatoglu, 2003;Isik et al, 2004;Khawar, 2003;Yudaeva et al, 2003;Zheka, 2005). Arouri et al (2014) examine the relationship between foreign ownership and firm performance for banks in the Gulf region.…”

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The impact of board independence and foreign ownership on financial and social performance of firms: evidence from the UAE

Al‐Gamrh

Al‐Dhamari

Jalan

et al. 2020

JAAR

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PurposeThis study examines the impact of two different types of foreign ownership—by Arab and non-Arab investors on firms' financial and social performance. It then goes on to investigate how the degree of board independence affects the aforementioned relationship between these two types of foreign investors on firm performance.Design/methodology/approachThe sample for the study is a panel of all listed firms in the Dubai Financial Market (DFM) and the Abu Dhabi Securities exchange (ADX) from 2008 to 2012.FindingsResults indicate that while Arab foreign ownership affects firms' financial and social performance negatively, non-Arab foreign ownership does so, positively. Further tests indicate that board independence weakens the negative relationship between firm financial and social performance with foreign Arab ownership and deteriorate the relationship between firm financial and social performance and non-Arab foreign ownership.Research limitations/implicationsFuture studies may extend the coverage of the study by including other countries in the region and other identities of the foreign investors.Practical implicationsThis study may help policy makers in the UAE to improve the implementation and enforcement of existing regulations concerning corporate social responsibility (CSR) and board independence. It also highlights the need to look into the monitoring role of independent board members.Originality/valueThis is the first study to examine the role of board independence on the relationship between foreign ownership and firm's financial and social performance. To the best of our knowledge, this is the first paper that attempts to enrich the understanding of foreign ownership by classifying it into Arab versus non-Arab.

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Section: Jaar 212 204mentioning

confidence: 99%

mentioning

confidence: 99%

The impact of board independence and foreign ownership on financial and social performance of firms: evidence from the UAE

Al‐Gamrh

Al‐Dhamari

Jalan

et al. 2020

JAAR

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Türk Bankacilik Sektöründe Veri̇mli̇li̇ği̇n Değerlendi̇ri̇lmesi̇: Bi̇r Veri̇ Zarflama Anali̇zi̇ Uygulamasi

Akben-Selçuk¹,

Soğuktaş²

2016

Yönetim Ve Ekonomi Araştırmaları Dergisi

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Total Factor Productivity Change in the Middle East Banking

Isik

Kulalı

Agcayazi-Yilmaz

2016

IJRBS

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This paper analyzes the total factor productivity developments in the Middle East banking, by drawing on the experience of Jordanian banks at the start of the new millennium. In order to control for the effects of different specifications of banking technology on the results, this study estimates the productivity and efficiency growth scores under two alternative approaches, production and intermediation models. On average, under the former model, we found 79% technical efficiency and 3.2% productivity growth, while under the later model we found 92% technical efficiency and 3.3% productivity growth for the sector. One implication is that the Jordanian banks can obtain considerable resource savings if they can catch up with the best practice banks. Among the organizational forms operating in this emerging market, we found that commercial banks generally outperform both investment and Islamic banks in terms of efficiency and total factor productivity growth.Peer-reviewed Academic Journal published by SSBFNET with respect to copyright holders. Page3to improve the overall performance of the banking sector and determine the causes of non-optimal behavior observed among their banks. By the revelation of the most efficient and productive banks, this study provides a "model" to follow for the managers of poorly performing banks. By the same token, policymakers may foster overall managerial performance of banks by first identifying "best practices" and "worst practices" associated with the most and least efficient banks and then encouraging the former practices while discouraging the latter (Berger and Humphrey, 1997;Isik, 2008). Furthermore, this paper has also some important research implications. Studies from different regulatory environments and market structures may help us conceive the impact of these differences on bank performance. For instance, the Jordanian banking market is highly concentrated as compared to those of advanced economies. For instance, the three-bank concentration ratio is 91% for Jordan, whereas it is 19% for the US, 22% for Japan, 41% for France, 45% for Germany and 0.56% for the UK. The Jordan's concentration ratio is also higher when compared to those of other emerging markets, such as 59% for Tunisia, 64% for Bangladesh, 65% for Egypt, 0.69 for Peru, 0.74 for Pakistan and 0.87 for Uruguay (Demirguc-Kunt and Levine, 1999). In some cases, the recent finance literature reports that there is a negative association between market concentration and bank performance (Berger and Mester, 1997;Berger et al., 1998). It is possible that banks of concentrated markets become less motivated to operate efficiently and productively, as they do not face strong competition from new banks and non-bank financial institutions. Moreover, the lack of developed money and capital markets also provides comfort for banks of emerging countries, as "disintermediation" from depositors and borrowers has not threatened their business yet to the extent that it did in developed markets. Therefore, ceteris paribus, comparison...

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Assessing The Relationship Between Liberalization, Ownership And Performance: The Case Of Turkish Banks

Abstract: Abstract

Cited by 5 publications

References 30 publications

The impact of board independence and foreign ownership on financial and social performance of firms: evidence from the UAE

The impact of board independence and foreign ownership on financial and social performance of firms: evidence from the UAE

Türk Bankacilik Sektöründe Veri̇mli̇li̇ği̇n Değerlendi̇ri̇lmesi̇: Bi̇r Veri̇ Zarflama Anali̇zi̇ Uygulamasi

Total Factor Productivity Change in the Middle East Banking

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