Athanasoglou, Panayiotis and Brissimis, Sophocles and Delis, Matthaios (2005): Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Published in: RePEc No. Working Paper 25 (June 2005): pp. 5-26.
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The aim of this study is to examine the effect of bank-specific, industry-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct-Performance (SCP) hypothesis. To account for profit persistence, we apply a GMM technique to a panel of Greek banks that covers the period 1985-2001. The estimation results show that profitability persists to a moderate extent, indicating that departures from perfectly competitive market structures may not be that large. All bank-specific determinants, with the exception of size, affect bank profitability significantly in the anticipated way. However, no evidence is found in support of the SCP hypothesis. Finally, the business cycle has a positive, albeit asymmetric effect on bank profitability, being significant only in the upper phase of the cycle.
|Item Type:||MPRA Paper|
|Original Title:||Bank-specific, industry-specific and macroeconomic determinants of bank profitability|
|English Title:||Bank-specific, industry-specific and macroeconomic determinants of bank profitability|
|Keywords:||Bank profitability;business cycles and profitability;dynamic panel data model|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||PANAYIOTIS P. ATHANASOGLOU|
|Date Deposited:||05. Jul 2011 14:01|
|Last Modified:||11. Feb 2013 17:51|
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