The relationship between size, growth and profitability of commercial banks

Shehzad, Choudhry Tanveer; Haan, Jakob de; Scholtens, Bert

doi:10.1080/00036846.2011.637896

Cited by 52 publications

(50 citation statements)

References 22 publications

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“…Also, they provide some evidence of positive persistence of growth for the European banking firms. A very recent work undertaken by Shehzad, de Haan, and Scholtens (2013) closely follows Goddard, Molyneux, and Wilson (2004), exploring persistence of growth and PoP for banking firms in 148 OECD and developing countries. Along these lines, the main purpose of the present study is to explore whether firms in KIBS and KIS industries exhibit higher persistence of growth as well as profitability compared to firms in less knowledge-intensive service industries.…”

Section: Dynamics Of Firm Profitability and Growth 295mentioning

confidence: 96%

Dynamics of Firm Profitability and Growth: Do Knowledge-Intensive (Business) Services Persistently Outperform?

Giotopoulos¹

2014

International Journal of the Economics of Business

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This paper explores the persistence of profitability and growth for firms operating in the Greek service sector, paying special attention to knowledge-intensive services (KIS) and knowledge-intensive business services (KIBS). The generalized method of moments is used on a rich panel of firms over a recent nine-year period. Quantile regressions are complementarily applied for KIS and KIBS industries. The key results from both growth and profit dynamics suggest that firms in KIS and KIBS industries persistently outperform firms in less knowledge-intensive service industries, pointing to strategic advantages of the former. Importantly, KIS and KIBS seem to be able to sustain their growth and profitability persistent trends even in times of crisis. Further insight into these issues is provided by the quantile analysis, the exploration of the profitability and growth inter-linkages, and the investigation of differences among various size groups in KIS and KIBS.

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Section: Dynamics Of Firm Profitability and Growth 295mentioning

confidence: 96%

Dynamics of Firm Profitability and Growth: Do Knowledge-Intensive (Business) Services Persistently Outperform?

Giotopoulos¹

2014

International Journal of the Economics of Business

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“…Banks in Africa face high operating costs typically due to high information asymmetry (Allen et al, 2011) which are likely to be accentuated during crisis due to lack of market confidence. Consequently, the initial cost of product development, diversification and branch expansion may be prohibitive (Shehzad et al, 2013;Ahokpossi, 2013). Higher market imperfection and uncertainty caused by the crisis may also affect cost recovery.…”

Section: Sizementioning

confidence: 99%

Determinants of bank profitability before, during, and after the financial crisis

Adelopo

Lloydking²,

Tauringana

2018

IJMF

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Purpose The purpose of this paper is to report the results of an investigation into the relationship between bank-specific, macroeconomic factors and bank profitability before (1999-2006), during (2007-2009), and after (2010-2013) the financial crisis. Design/methodology/approach Using the Economic Community of West African States’ bank panel data from 1999 to 2013, the paper used fixed effect models. The panel model includes bank-specific determinants (size, cost management, and liquidity), industry level, and macroeconomic variables. Findings Panel data analyses results show that there is a significant relationship between bank-specific determinants (size, cost management, and liquidity) and bank profitability (ROA) before, during, and after the financial crisis. However, the relationships between other bank-specific (capital strength, credit risk, and market power), macroeconomic (gross domestic product and inflation) determinants are sensitive to both periods of analysis (before, during, and after financial crisis) and bank profitability measure used (ROA or NIM). Originality/value Overall, these results suggest that the financial crisis did not affect the relationships between some bank-specific determinants and bank profitability.

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“…According to various studies about firm profitability determinants(Adams and Buckle, 2003;Goddard et al, 2005;Gschwandtner, 2005;Galbreath and Galvin, 2008;Pouw and Kakes, 2013;Shehzad et al, 2013;Gambacorta et al, 2014;Vu et al, 2014).2 Monetary variables are deflated according to inflation in Portugal. We construct a price index from 2002 to 2009.…”

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confidence: 99%

Profitability determinants of Portuguese knowledge-intensive business services: empirical evidence using panel data models

Nunes

Serrasqueiro

2014

Applied Economics Letters

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This article studies the profitability determinants of knowledge-intensive business services (KIBS). To do so, we consider a sample of 187 Portuguese KIBS for the period 2002 to 2009, using dynamic panel estimators as estimation method. The results indicate that size, age, liquidity, long-term debt and R&D expenditure are determinants stimulating the profitability of Portuguese KIBS, with risk being a restrictive determinant. In addition, profitability is found to be persistent over time. The empirical evidence lets us make important suggestions for political decision-makers and the owners/managers of Portuguese KIBS.

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The relationship between size, growth and profitability of commercial banks

Cited by 52 publications

References 22 publications

Dynamics of Firm Profitability and Growth: Do Knowledge-Intensive (Business) Services Persistently Outperform?

Dynamics of Firm Profitability and Growth: Do Knowledge-Intensive (Business) Services Persistently Outperform?

Determinants of bank profitability before, during, and after the financial crisis

Profitability determinants of Portuguese knowledge-intensive business services: empirical evidence using panel data models

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