Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187965 
Year of Publication: 
2017
Citation: 
[Journal:] Future Business Journal [ISSN:] 2314-7210 [Volume:] 3 [Issue:] 2 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2017 [Pages:] 159-171
Publisher: 
Elsevier, Amsterdam
Abstract: 
We investigate whether ownership concentration influences bank profitability in a developing country context. We focus on bank ownership concentration measured as the amount of direct equity held by a majority shareholder categorised into: high ownership concentration, moderate ownership concentration and disperse ownership. We find that banks with high ownership concentration have higher return on assets, higher net interest margin and higher recurring earning power while banks with dispersed ownership have lower return on assets but have higher return on equity. Also, higher cost efficiency improves the return on assets of widely-held banks and the return on equity of banks with moderate ownership. The findings have implications.
Subjects: 
Agency theory
Banks
Corporate governance
Firm performance
Ownership structure
Profitability
Return on asset
Return on equity
JEL: 
G3
G31
G34
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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