Bank governance and bank performance in Turkish banking industry: The analysis of static, selection and dynamic ownership effects

Dilvin Taşkin F.

1st Annual Online International Conference on Corporate Governance and Regulation in Banks, 2010, Sumy, Ukraine, 27 May - 02 June 2010, vol.7, pp.42-48 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 7
  • City: Sumy
  • Country: Ukraine
  • Page Numbers: pp.42-48
  • Keywords: Bank ownership, Commercial banks, Corporate governance, M&A
  • Dokuz Eylül University Affiliated: Yes

Abstract

Turkish banking has undergone a rapid consolidation process in the forms of domestic mergers and acquisitions and foreign acquisitions. This paper analyzes the effects of corporate governance on the performance of the Turkish commercial banks, using the data from 1995 to 2008. The paper considers the static, selection and dynamic effects of domestic, foreign and state-ownership on bank performance. The results show that state-owned banks have strong long-term performance, whereas the foreign banks have poor long-term performance. The selected banks for domestic M&As and for foreign acquisitions tend to perform better. The dynamic indicators show that the merged banks show inferior performance than their counterparts.