Abstract
This study attempts to give an insight into the trend in the performance of the Turkish banking sector by conducting a panel data fixed effects regression analysis. The results reveal that efficiency change is negatively related to the number of branches. We find a positive relationship between the loan ratio and the performance indices efficiency and efficiency change. Furthermore, bank capitalization is positively related to efficiency change. Interestingly however, return on equity is not statistically significant in explaining any of the efficiency measures. There is also no robust relationship between foreign ownership and efficiency. Finally, restructuring attempts in post-crises epoch robustly account for the improvement in efficiency scores in recent years.
| Original language | English |
|---|---|
| Pages (from-to) | 1593-1602 |
| Number of pages | 10 |
| Journal | Physica A: Statistical Mechanics and its Applications |
| Volume | 387 |
| Issue number | 7 |
| DOIs | |
| Publication status | Published - 1 Mar 2008 |
| Externally published | Yes |
Keywords
- Efficiency
- Foreign ownership
- Panel data analysis
- Productivity
- Turkish commercial banks