The dynamic relationship between earnings volatility, concentration, stability and size in the Turkish banking sector

Kasman A., Kirbas-Kasman S.

APPLIED ECONOMICS LETTERS, cilt.20, sa.12, ss.1187-1192, 2013 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 20 Sayı: 12
  • Basım Tarihi: 2013
  • Doi Numarası: 10.1080/13504851.2013.799742
  • Dergi Adı: APPLIED ECONOMICS LETTERS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.1187-1192
  • Anahtar Kelimeler: earnings volatility, concentration, stability, bank size, Turkish banking, G21, G32, PANEL-DATA, COMPETITION, MODELS
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

This article investigates the causal relationship between earnings volatility, concentration, stability and bank size in the Turkish banking sector in the period 2002 to 2011. A relatively new empirical methodology, dynamic panel Granger-causality test, is used to analyse the causal relationship between these variables. The empirical result shows that bank size and concentration negatively Granger-cause earnings volatility, suggesting that larger banks and more concentrated banking market decrease earnings volatility. Moreover, the result also indicates that concentration in the banking sector increases bank stability and supports the concentration-stability' hypothesis.