Ownership Structure and Bank Performance

Rahman, A. Nora Azureen Abdul; Reja, Binyam

doi:10.7763/joebm.2015.v3.232

Cited by 42 publications

(39 citation statements)

References 42 publications

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“…Institutional investors are prevalent in Oman and concerned with ROA as it appears in the MSM report (MSM companies Guide, 2017). However, this notion is consistent with that of Abdul Rahman and Md Reja (2015), who assumed that if investors have insufficient ownership percentage then it will not affect performance.…”

Section: Model 2 (Dependent Variable-roe)supporting

confidence: 84%

“…The final group of evidence pertains to empirical studies that found no relationships or impacts of ownership concentrations on firm performance. Few studies, such as Qin, Mishra and Smyth (2012) and Abdul Rahman and Md Reja (2015), concluded this result for certain reasons. For example, Abdul Rahman and Md Reja (2015) concluded that the model used in several studies does not explain the changes in firm performance owing to other factors, such as research sample, variables, period of study, or statistical data.…”

Section: Literature Review-no Associationmentioning

confidence: 98%

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Ownership concentration and firm performance: An empirical analysis in Oman

Ani¹,

Kathiri²

2019

EurJ Appl Econ

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This study investigates the effect of ownership concentrations on firm performance. A sample of 115 Omani companies in three sectors (i.e. financial, industrial and service) was selected for the study. The sample companies selected were listed in the Muscat Securities Market for a period of five years (2011-2015). Four types of ownership were analysed, namely, the ownership of Omani investors, the Gulf Cooperation Council (GCC) country investors, Arab non-GCC investors, and foreign investors. Firm performance was measured by return on assets (ROA), return on equity (ROE), and market fair value (MFV) of share. Panel regression was used to study the effect of ownership concentrations on firm performance. Results reveal a positive and significant effect of GCC countries and foreign investors on ROA only in the industrial sector. Moreover, a positive and significant effect of Omani and GCC countries investors was found on MFV in the service sector. Finally, results found no effect of ownership concentrations on ROE in all sectors.

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Section: Model 2 (Dependent Variable-roe)supporting

confidence: 84%

Section: Literature Review-no Associationmentioning

confidence: 98%

Ownership concentration and firm performance: An empirical analysis in Oman

Ani¹,

Kathiri²

2019

EurJ Appl Econ

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“…A study by Florackis and Ozkan (2009) finds that institutional ownership is not always concentrated enough to accumulate voting power to monitor management. Rahman and Reja (2015) find no association between institutional investors and bank performance. Piesse et al (2012) examine the ownership structure in listed firms of Saudi Arabia and Egypt and indicate that the role of institutional investors in monitoring is negligible.…”

Section: Impact Of Institutional Ownership On Bank Performancementioning

confidence: 78%

Ownership concentration, ownership identity, and bank performance

Azoury

Azouri

Bouri

et al. 2018

Banks and Bank Systems

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This paper examines whether ownership concentration and certain type of ownership can affect the financial performance of Lebanese banks. It uses longitudinal data from the largest 35 Lebanese banks over the period 2009–2014 and employs the panel regression model. The empirical results show that ownership concentration and certain type of shareholders play an important role in the area of corporate governance in Lebanese banks. In particular, bank financial performance is positively associated with ownership concentration, managerial ownership, and foreign and institutional ownerships; however, family ownership is not related to bank performance. Also, this paper shows that both ownership concentration and managerial ownership have a U-shaped relationship with bank performance. Several robustness tests largely confirm the findings, with important implications for policy-makers. The findings are crucial to policy-makers and bankers who are interested in tailoring good corporate governance principles for the Lebanese banking sector.

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“…By using frontier based non-parametric technique, Data Envelopment Analysis (DEA), provides significant insights on efficiency of different banks and places private sector ones at an advantage situation and thereby hints out the possibility of further improvisation of most of the public sector banks. Rahman and Rejab (2015) suggested that the bank performance varies with different types of ownership structure. Ozili and Uadiale (2017) investigated whether ownership concentration influence banking profitability in a developing country context.…”

Section: Empirical Literaturementioning

confidence: 99%

Comparing Financial Performance of State Owned Commercial Bank with Privately Owned Commercial Banks in Ethiopia

Tekatel¹,

Nurebo²

2019

EJOBSAT

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The main objective of this study is to examine the effect of ownership structure on financial performance of Ethiopian commercial banks. Hence, the financial performance of state owned commercial bank was compared with privately owned commercial banks in Ethiopia based on key financial performance measures. In order to achieve the stated objective, the study adopts a quantitative research approach by using financial ratio analysis and test for means equality analysis techniques. Samples of fifteen commercial banks were selected based on the year of establishment. Audited financial statement data covering from 2011 to 2017 analyzed. The result reveal that ROEs of public sector bank was higher than those of private banks but the overall performance of state owned bank was not observed sound because other financial ratios including ROA, LDR, CDR, CAR and NIM, of most of the private banks were found superior. Other findings of the study show that there is a significance difference between the financial performance measures like ROE, CDR, LDR, CAR, EIR and NIM between states owned CBE and the privately owned banks in Ethiopia. In terms of ROA, not statically significant difference between state owned and private commercial banks in Ethiopia over the studied period.

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Ownership Structure and Bank Performance

Cited by 42 publications

References 42 publications

Ownership concentration and firm performance: An empirical analysis in Oman

Ownership concentration and firm performance: An empirical analysis in Oman

Ownership concentration, ownership identity, and bank performance

Comparing Financial Performance of State Owned Commercial Bank with Privately Owned Commercial Banks in Ethiopia

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