Determinants of Banks’ Performance: the Case of ROE Of G-SIBs in Central, Eastern and South-Eastern Europe

Iwanicz-Drozdowska, Magorzata; Witkowski, Bartosz

Abstrakt

Purpose: The goal of the paper is to analyse the determinants of the level of ROE (return on equity) for two groups of banks, interrelated by capital links, and their banking sectors.

Methodology: For the case study, we chose companies that, in 2011–2013, were designated by the Financial Stability Board as global systemically important banks (G-SIBs) and their subsidiaries operating in Central, Eastern and Southeastern Europe (CESEE) as well as their banking sectors. We sought to identify differences in the performance drivers, taking into account bank-specific and country- (or sector-) specific factors.

Findings: We found no significant differences in the level of ROE among the analysed groups; however, we identified a different set of determinants and their impact on ROE.

Słowa kluczowe

performance (4)parent companies (1)subsidiaries (1)roe (1)

Powiązania

Allen, F., Jackowicz, K., Kowalewski, O. and Kozłowski, Ł. (2015). Bank lending, crises, and changing ownership structure in Central and Eastern European countries. Journal of Corporate Finance, http://dx.doi.org/10.1016/j.jcorpfin.2015.05.001 [Google Scholar]
Athanasoglou, P., Brissimis, S. and Delis, M. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of International Financial Markets, Institutions and Money, 18(2): 121–136, http://dx.doi.org/10.1016/j.intfin.2006.07.001 [Google Scholar]
Beck, N. and Katz, J. (1995).What to do (and not to do) with Time-Series Cross-Section Data. The American Political Science Review, 89(3): 634–647, http://dx.doi.org/10.2307/2082979 [Google Scholar]
Bonin, J.P., Hasan, I. and Wachtel, P. (2005). Bank performance, efficiency and ownership in transition countries. Journal of Banking and Finance, 29(1): 31–53, http://dx.doi.org/10.1016/j.jbankfin.2004.06.015 [Google Scholar]
Brissimis, S., Delis, M. and Papanikolaou, N. (2008). Exploring the nexus between banking sector reform and performance: Evidence from newly acceded EU countries. Journal of Banking and Finance, 32(12): 2674–2683, http://dx.doi.org/10.1016/j.jbankfin.2008.07.002 [Google Scholar]
Claessens, S., Demirguc-Kunt, A. and Huizinga, H. (2001). How does foreign entry affect domestic banking markets? Journal of Banking and Finance, 25(5): 891–911. [Google Scholar]
Claeys, S. and Vander Vennet, R. (2008). Determinants of bank interest margins in Central and Eastern Europe: A comparison with the West. Economic Systems, 32(2): 197–216, http://dx.doi.org/10.1016/j.ecosys.2007.04.001 [Google Scholar]
Cull, R. and Martínez Pería, M. (2013). Bank ownership and lending patterns during the 2008-2009 financial crisis: Evidence from Latin America and Eastern Europe. Journal of Banking and Finance, 37(12): 4861–4878, http://dx.doi.org/10.1016/j.jbankfin.2013.08.017 [Google Scholar]
Davidson, R. and MacKinnon, G. (1993). Estimation and Inference in Econometrics. New York: Oxford University Press. [Google Scholar]
Hagendorff, J., Keasey, K. and Vallascas, F. (2012). Systemic size, bank risk and systemic crises (September 1). Available at SSRN: http://ssrn.com/abstract=2181926, http:// dx.doi.org/10.2139/ssrn.2181926 [Google Scholar]
Havrylchyk, O. and Jurzyk, E. (2011a). Inherited or earned? Performance of foreign banks in Central and Eastern Europe. Journal of Banking and Finance, 35(5): 1291–1302. [Google Scholar]
Havrylchyk, O. and Jurzyk, E. (2011b). Profitability of foreign banks in Central and Eastern Europe. Economics of Transition, 19(3): 443–472, http://dx.doi.org/10.1016/j.jbankfin.2010.10.007 [Google Scholar]
Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. Stata Journal, 7: 281–312. [Google Scholar]
Hryckiewicz, A. (2014). Anatomia kryzysów bankowych. Warszawa: Poltext. [Google Scholar]
Iwanicz-Drozdowska, M. (2014). Global Systemically Important Banks – how to identify and regulate them? Journal of Economics and Management, 18: 146–158. [Google Scholar]
Iwanicz-Drozdowska, M. (ed.) (2002). Kryzysy bankowe. Przyczyny i rozwiązania. Warszawa: PWE/BFG. [Google Scholar]
Koutsomanoli-Filippaki, A., Margaritis, D. and Staikouras, C. (2009). Efficiency and productivity growth in the banking industry of Central and Eastern Europe. Journal of Banking and Finance, 32(3): 557–567, http://dx.doi.org/10.1016/j.jbankfin.2008.09.009 [Google Scholar]
Lensink, R., Meesters, A. and Naaborg, I. (2008). Bank efficiency and foreign ownership: Do good institutions matter? Journal of Banking and Finance, 32(5): 834–844, http://dx.doi.org/10.1016/j.jbankfin.2007.06.001 [Google Scholar]
Laeven, L. and Levine, R. (2009). Bank Governance, Regulation and Risk Taking. Journal of Financial Economics, 93(2): 259–273, http://dx.doi.org/10.1016/j.jfineco.2008.09.003 [Google Scholar]
Madous, J. and de Guevara, J. (2004). Factors explaining the interest margin in the banking sectors of the European Union. Journal of Banking and Finance, 28(9): 2259–2281, http://dx.doi.org/10.1016/j.jbankfin.2003.09.004 [Google Scholar]
Sturm, J. and Williams, B. (2008). Characteristics determining the efficiency of foreign banks in Australia. Journal of Banking and Finance, 32(11): 2346–2360, http://dx.doi.org/10.1016/j.jbankfin.2007.12.029 [Google Scholar]

Kompletne metadane

Cytowanie zasobu

APA style

Iwanicz-Drozdowska, Magorzata & Witkowski, Bartosz (2016). Iwanicz-Drozdowska, M. , & Witkowski, B. . (2016). Determinants of Banks’ Performance: the Case of ROE Of G-SIBs in Central, Eastern and South-Eastern Europe. Central European Management Journal, 24(1), 46-63. https://doi.org/10.7206/jmba.ce.2450-7814.163 (Original work published 2016)

MLA style

Iwanicz-Drozdowska, Magorzata and Witkowski, Bartosz. Iwanicz-Drozdowska, M. , i B. Witkowski. „Determinants Of Banks’ Performance: The Case Of Roe Of G-Sibs In Central, Eastern And South-Eastern Europe”. 2016. Central European Management Journal, t. 24, nr 1, 2016, ss. 46-63.

Chicago style

Iwanicz-Drozdowska, Magorzata and Witkowski, Bartosz. Iwanicz-Drozdowska, Magorzata , i Bartosz Witkowski. „Determinants Of Banks’ Performance: The Case Of Roe Of G-Sibs In Central, Eastern And South-Eastern Europe”. Central European Management Journal, Central European Management Journal, 24, nr 1 (2016): 46-63. doi:10.7206/jmba.ce.2450-7814.163.

Prawa autorskie

CC-BY-NC-ND

[1] Allen, F., Jackowicz, K., Kowalewski, O. and Kozłowski, Ł. (2015). Bank lending, crises, and changing ownership structure in Central and Eastern European countries. Journal of Corporate Finance, http://dx.doi.org/10.1016/j.jcorpfin.2015.05.001 [Google Scholar]

[2] Athanasoglou, P., Brissimis, S. and Delis, M. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of International Financial Markets, Institutions and Money, 18(2): 121–136, http://dx.doi.org/10.1016/j.intfin.2006.07.001 [Google Scholar]

[3] Beck, N. and Katz, J. (1995).What to do (and not to do) with Time-Series Cross-Section Data. The American Political Science Review, 89(3): 634–647, http://dx.doi.org/10.2307/2082979 [Google Scholar]

[4] Bonin, J.P., Hasan, I. and Wachtel, P. (2005). Bank performance, efficiency and ownership in transition countries. Journal of Banking and Finance, 29(1): 31–53, http://dx.doi.org/10.1016/j.jbankfin.2004.06.015 [Google Scholar]

[5] Brissimis, S., Delis, M. and Papanikolaou, N. (2008). Exploring the nexus between banking sector reform and performance: Evidence from newly acceded EU countries. Journal of Banking and Finance, 32(12): 2674–2683, http://dx.doi.org/10.1016/j.jbankfin.2008.07.002 [Google Scholar]

[6] Claessens, S., Demirguc-Kunt, A. and Huizinga, H. (2001). How does foreign entry affect domestic banking markets? Journal of Banking and Finance, 25(5): 891–911. [Google Scholar]

[7] Claeys, S. and Vander Vennet, R. (2008). Determinants of bank interest margins in Central and Eastern Europe: A comparison with the West. Economic Systems, 32(2): 197–216, http://dx.doi.org/10.1016/j.ecosys.2007.04.001 [Google Scholar]

[8] Cull, R. and Martínez Pería, M. (2013). Bank ownership and lending patterns during the 2008-2009 financial crisis: Evidence from Latin America and Eastern Europe. Journal of Banking and Finance, 37(12): 4861–4878, http://dx.doi.org/10.1016/j.jbankfin.2013.08.017 [Google Scholar]

[9] Davidson, R. and MacKinnon, G. (1993). Estimation and Inference in Econometrics. New York: Oxford University Press. [Google Scholar]

[10] Hagendorff, J., Keasey, K. and Vallascas, F. (2012). Systemic size, bank risk and systemic crises (September 1). Available at SSRN: http://ssrn.com/abstract=2181926, http:// dx.doi.org/10.2139/ssrn.2181926 [Google Scholar]

[11] Havrylchyk, O. and Jurzyk, E. (2011a). Inherited or earned? Performance of foreign banks in Central and Eastern Europe. Journal of Banking and Finance, 35(5): 1291–1302. [Google Scholar]

[12] Havrylchyk, O. and Jurzyk, E. (2011b). Profitability of foreign banks in Central and Eastern Europe. Economics of Transition, 19(3): 443–472, http://dx.doi.org/10.1016/j.jbankfin.2010.10.007 [Google Scholar]

[13] Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. Stata Journal, 7: 281–312. [Google Scholar]

[14] Hryckiewicz, A. (2014). Anatomia kryzysów bankowych. Warszawa: Poltext. [Google Scholar]

[15] Iwanicz-Drozdowska, M. (2014). Global Systemically Important Banks – how to identify and regulate them? Journal of Economics and Management, 18: 146–158. [Google Scholar]

[16] Iwanicz-Drozdowska, M. (ed.) (2002). Kryzysy bankowe. Przyczyny i rozwiązania. Warszawa: PWE/BFG. [Google Scholar]

[17] Koutsomanoli-Filippaki, A., Margaritis, D. and Staikouras, C. (2009). Efficiency and productivity growth in the banking industry of Central and Eastern Europe. Journal of Banking and Finance, 32(3): 557–567, http://dx.doi.org/10.1016/j.jbankfin.2008.09.009 [Google Scholar]

[18] Lensink, R., Meesters, A. and Naaborg, I. (2008). Bank efficiency and foreign ownership: Do good institutions matter? Journal of Banking and Finance, 32(5): 834–844, http://dx.doi.org/10.1016/j.jbankfin.2007.06.001 [Google Scholar]

[19] Laeven, L. and Levine, R. (2009). Bank Governance, Regulation and Risk Taking. Journal of Financial Economics, 93(2): 259–273, http://dx.doi.org/10.1016/j.jfineco.2008.09.003 [Google Scholar]

[20] Madous, J. and de Guevara, J. (2004). Factors explaining the interest margin in the banking sectors of the European Union. Journal of Banking and Finance, 28(9): 2259–2281, http://dx.doi.org/10.1016/j.jbankfin.2003.09.004 [Google Scholar]

[21] Sturm, J. and Williams, B. (2008). Characteristics determining the efficiency of foreign banks in Australia. Journal of Banking and Finance, 32(11): 2346–2360, http://dx.doi.org/10.1016/j.jbankfin.2007.12.029 [Google Scholar]

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