Article ID Journal Published Year Pages File Type
5091403 Journal of Banking & Finance 2007 23 Pages PDF
Abstract
This paper uses a new dataset to reassess the relationship between bank ownership and bank performance, providing separate estimations for developing and industrial countries. It finds that state-owned banks located in developing countries tend to have lower profitability and higher costs than their private counterparts, and that the opposite is true for foreign-owned banks. The paper finds no strong correlation between ownership and performance for banks located in industrial countries. Next, in order to test whether the differential in performance between public and private banks is driven by political considerations, the paper checks whether this differential widens during election years; it finds strong support for this hypothesis.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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