Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2015.1041778
Profit persistence and determinants of bank profitability in Croatia
Maja Pervan
orcid.org/0000-0001-6895-5258
Iva Pelivan
Josip Arnerić
orcid.org/0000-0002-2901-2609
Sažetak
The aim of this research was to determine the persistence of prof
banking sector of the Republic of Croatia. Most developing countries have experienced common changes within restructuring of the banking system and therefore, this issue has become crucial, especially after comparing poor empirical findings in these countries to the findings of developed countries. However, research related to this issue is non-existent in the Croatian banking sector. Moreover, among the few studies that were carried out on the territory of the Central and Eastern European banking markets, none of the studies have analysed the persistence of profit in terms of the Markov Chain stochastic process. In addition to the profit persistence analysis,
authors defined and estimated a model that would enable the identification of the profitability determinants of Croatian banks. In this sense, the model incorporated three groups of profitability determinants: bank-specific, industry-specific and macroeconomic. The variables with a statistically significant impact on the profitability
of banks were identified using a dynamic panel model, while the application of the Markov Chains stochastic process revealed that profit persistence was less likely to occur in banks with higher profit.
Ključne riječi
profit persistence; profitability determinants; dynamic panel model; Markov chain; banks; Croatia
Hrčak ID:
171512
URI
Datum izdavanja:
20.12.2015.
Posjeta: 3.235 *