Skip to the main content

Original scientific paper

https://doi.org/10.1080/1331677X.2014.970450

Influence of board and ownership structure on bank profitability: evidence from South East Europe

Predrag Stančić
Milan Čupić
Vladimir Obradović


Full text: english pdf 433 Kb

page 573-589

downloads: 736

cite


Abstract

We investigate the impact of board and ownership structure on profitability of 74 commercial banks from four transition economies of South East Europe over the 2005–2010 period. We analyse this relation using Ordinary Least Squares regression analysis on an unbalanced panel data-set of 377 observations. We find negative and
significant relationship between board size and bank profitability, while the proportion of independent directors on the board is negatively, but insignificantly related to bank profitability. Impact of ownership concentration on bank profitability is negative, but weak. We also find that privately held domestic banks outperform
state-owned and foreign banks. Important factors influencing bank profitability in South East Europe are also bank size and bank capitalisation.

Keywords

commercial banks; board structure; ownership structure; bank profitability

Hrčak ID:

171346

URI

https://hrcak.srce.hr/171346

Publication date:

20.12.2014.

Visits: 1.714 *