The structure-performance relationship for European banking

Goldberg, Lawrence G.; Rai, Anoop

doi:10.1016/0378-4266(95)00021-6

Cited by 240 publications

(147 citation statements)

References 18 publications

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“…An 6 For example, Molyneux and Thornton (1992), Molyneux and Forbes (1995), Berger (1995), and Goldberg and Rai (1996). 7 Berger and Hannan (1997) 8 Studies that have included proxies for scale efficiency include Shepherd (1982); and Allen and Hagin, (1989).…”

Section: Source: Annual Reportsmentioning

confidence: 99%

Market power versus efficient-structure in Arab GCC banking

Al‐Muharrami

Matthews

2009

Applied Financial Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in CARDIFF BUSINESS SCHOOL WORKING PAPER SERIESThis working paper is produced for discussion purpose only. These working papers are expected to be published in due course, in revised form, and should not be quoted or cited without the author's written permission. Cardiff Economics Working Papers are available online from: http://www.cardiff.ac.uk/carbs/econ/workingpapers Enquiries: EconWP@cardiff.ac.uk

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Section: Source: Annual Reportsmentioning

confidence: 99%

Market power versus efficient-structure in Arab GCC banking

Al‐Muharrami

Matthews

2009

Applied Financial Economics

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“…The SCP theory explains that the market concentration fosters collusion among large firms in the industry which subsequently leads to higher profits, hence SCP points out that changes in market concentration may have a positive influence on a firm"s financial performance (Goldberg,Lawrence and Rai, 1996). Some contemporary studies have, however, challenged the acceptability of the positive relationship predicted between market concentration and profitability.…”

Section: Literature Review:-mentioning

confidence: 99%

“…This behavior of the efficient firms allowed such firms to concentrate and earn higher profits with further enhancing their market share (Williams, Molyneux, Thornton, 1994). Accordingly, the efficient structure theory stated that the positive relationship between profit and concentration results from the lower cost achieved through superior management and efficient production process (Goldberg, Lawrence and Rai, 1996). According to Demsetz (1973) and Peltzman (1977) the efficient structure hypothesis provides an explanation for the positive link between bank profitability and concentration/market share.…”

Section: Literature Review:-mentioning

confidence: 99%

Interest Rate Variations and the Profitability of Islamic Banks in Kenya.

Wanjare¹,

Motari.²

2016

IJAR

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“…In an important criticism of the SCP methodology, Gilbert (1984), Ruthenberg (1994) Goldberg andRai (1996) note that bank regulation such as entry/exit barriers and direct efficiency measures tend to be neglected. For example, SCP should hold true in markets with greater entry barriers where market participants are effectively protected from competition.…”

Section: A Brief Overview Of Research On Market Concentration Competmentioning

confidence: 99%

Financial Services Consolidation and Performance in New York State Savings and Loan Associations, 2000-2011

Doyran¹

2012

IJEF

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The market structure-performance relationship has been tested for US banking in industrial organization studies. Two divergent hypotheses with regard to this relationship are the Structure-Conduct-Performance (SCP) Paradigm and Efficient Structure Hypothesis (ESH). This paper presents the test results of both hypotheses with respect to the New York State S&L associations using the time-series and cross sectional (firm-level) data for the most recent period 2000-2010. The results of PEGLS regression indicate that performances of S&Ls vary with respect to operating cost, credit risk and capitalization. Neither market share nor concentration, however, plays a significant role in explaining profitability. The results partially support the ESH as an explanation for the market behavior of New York State S&L associatons. Given that profitable banks are efficient but also risk dependent, additional policies are warranted in order to mitigate risk and maintain the safety and soundness for the remaining S&Ls in the New York State.

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The structure-performance relationship for European banking

Cited by 240 publications

References 18 publications

Market power versus efficient-structure in Arab GCC banking

Market power versus efficient-structure in Arab GCC banking

Interest Rate Variations and the Profitability of Islamic Banks in Kenya.

Financial Services Consolidation and Performance in New York State Savings and Loan Associations, 2000-2011

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