Ownership concentration, ownership identity, and bank performance

Azoury, Nehme; Azouri, Andre; Bouri, Elie; Khalife, Danielle

doi:10.21511/bbs.13(1).2018.06

Cited by 8 publications

(14 citation statements)

References 34 publications

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“…Tan and Floros (2012) found that size had no effect on profitability in 101 banks in China. Meanwhile, Azoury et al (2018) found a negative effect between bank size on profitability in 35 banks in Lebanon. Likewise, Tan (2016) found that size had a negative effect on profitability in China and Javaid et al (2011) found a negative effect on the top 10 banks in India.…”

Section: Literature Reviewmentioning

confidence: 99%

“…H1: The level of stability has a positive effect on the profitability of the BPRS Bank size (SIZE) is a proxy for the total assets owned by the bank (Azoury et al, 2018;Bougatef, 2017;Lee & Isa, 2017). Banks with large asset sizes tend to generate higher profitability because banks have more opportunities to diversify their profitable portfolios.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Several related studies include Ali and Puah (2019), and Le (2020) which examined the relationship between stability and profitability in banking. Meanwhile, Azoury et al (2018), Zouari and Taktak (2014), Boussaada and Karmani (2015), Dietrich and Wanzenried (2014), Tan (2016), and Tan and Floros, (2012) examined the relationship between size and bank profitability.…”

Section: Introductionmentioning

confidence: 99%

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Do stability and size affect the profitability of Islamic rural bank in Indonesia?

Sudarsono

Afriadi

Suciningtias

2021

JEKI

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Purpose -This study aims to analyze the effect of stability, size, financial performance and macroeconomic variables on the profitability of Islamic Rural Banks (BPRS) in Indonesia.Methodology -This study uses panel data consisting of 82 BPRS from December 2012 to December 2018. This study uses a dynamic model using GMM (General Method of Moments) developed by Arellano & Bover (1995) and Blundell & Bond (1998). GMM is used to describe the actual conditions in the analysis of profitability of Islamic Rural Banks.Findings -The findings of this study indicate that the stability and size of the BPRS have a negative effect on the level of ROA and ROE. Further, BAC has a positive effect on ROA but it has a negative effect on ROE. While the deposit structure (DS) is found to have a positive effect on ROA and ROE, FDR and the total deposit (DAR) is found to have a positive effect on both ROA and ROE. Meanwhile, the capital structure does not show a significant value on ROA. On the other hand, economic growth (GDP) and inflation (INF) do not show a significant relationship to ROA, but inflation is positively related to ROE.Originality -This study is to determine the effect of the stability and the size of BPRS on its profitability. This study uses 6 models to obtain a consistent variation of variables in influencing profitability.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Do stability and size affect the profitability of Islamic rural bank in Indonesia?

Sudarsono

Afriadi

Suciningtias

2021

JEKI

View full text Add to dashboard Cite

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“…Research on foreign shareholder's value creation is still uncommon, especially in banking of developing countries like Indonesia. Among some examples are Johan et al [4], Batten et al [5], Dong et al [6], Ghosh [7], Bongini et al [8], Mori et al [9], Saif-Alyousfi et al [10], Agustin et al [11], Azoury et al [12], Shawtari [13], Basri et al [14], Kowaleski [15], and Rathnayake et al [16].…”

Section: Introductionmentioning

confidence: 99%

“…Azoury et al [12] examines whether ownership concentration and a certain type of ownership can affect the financial performance of Lebanese banks. It uses longitudinal data from the most significant 35 Lebanese banks over the period 2009-2014 and employs the panel regression model.…”

Section: Introductionmentioning

confidence: 99%

Do Foreign Firms Bring Value to Emerging Financial Market? (An Empirical Evidence Indonesia Banking)

Johan

2020

Proceedings of the 3rd Asia Pacific Management Research Conference (APMRC 2019)

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The research aims to study the value created by the foreign shareholders in the Indonesia banking industry from 2016-2018. The research analyzed the performance of foreignowned banks versus domestic owned banks. The banking industry is one of main drivers of the main drivers of economic growth. The study focused on the 19 banks that are categorized as bank books 3 and 4 asper the central bank regulation. The shareholders' status will be the independent variable, and the key financial ratios will be dependent variables. The financial ratios are capital structure, credit risk firm size, and profitability ratio. We use non-parametric (Mann Whitney) and parametric (Dummy Variable Regression). The empirical results show that there are differences in profitability and firm size. The profitability was shown in return on assets, return on equity, economic value-added. The firm size was shown in total assets and equity. The local banks performed better than foreign banks in return on assets, return on equity, economic value-added, and net interest margin. However, foreign banks only performed better than local banks in equity size. There was no significant difference in capital structure and credit risk. The results are significant at a= 1% for return on asset, economic value-added, and equity size.

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Blockholding and agency cost: evidence from Nigeria

Ibekwe¹

2021

IJOEM

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PurposeThe study examines how blockholding, blockholding nationality and multiple blockholder structures (MBS) are related to agency cost in Nigeria.Design/methodology/approachData sourced from the annual reports of 84 non-financial services firms listed on the Nigerian Stock Exchange (NSE) from January 1, 2008, to December 31, 2015, were analyzed using the hybrid model in Stata 15.FindingsBlockholding showed a significant negative relationship with the expense ratio (ER) measure of agency cost at the between-firm level but not significantly related to asset utilization ratio (AUR). This result was driven more by foreign blockholding and concentration of control, which were negatively and significantly related to the ER. Concentration of control is negatively related to the AUR. Domestic blockholding and the number of blockholders were not significantly related to agency cost. Foreign-blockholder-firms had a significantly greater concentration of control (lesser contest for control) than domestic-blockholder-firms.Practical implicationsThe findings suggest that foreign blockholding would be more effective in controlling agency costs in Nigeria. While the concentration of control (lesser contest for control) appears to be an efficient governance mechanism for reducing agency costs associated with expenses in Nigeria, it seems to exacerbate agency costs associated with asset utilization.Originality/valuePrevious researchers have not studied how foreign and domestic blockholding are related to agency cost. They also have not studied how MBS and the contest for control are related to agency cost and explain differences in the foreign/domestic blockholding-agency cost relationships in the Nigerian context.

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Ownership concentration, ownership identity, and bank performance

Cited by 8 publications

References 34 publications

Do stability and size affect the profitability of Islamic rural bank in Indonesia?

Do stability and size affect the profitability of Islamic rural bank in Indonesia?

Do Foreign Firms Bring Value to Emerging Financial Market? (An Empirical Evidence Indonesia Banking)

Blockholding and agency cost: evidence from Nigeria

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