The Impact of Ownership Structure on Banks Strategy in Central and East European Countries

Katarzyna Mikołajczyk

Abstract


The aim of this paper is to verify the hypothesis that ownership structure has strong influence on strategy and performance of commercial banks in Central and East European countries, however the strength and character of this relationship depends on macroeconomic environment. The study was carried out for banks operating in eight CEE countries and was based on comparative analysis of ten financial ratios, describing three crucial areas of banking activity: investment strategy, efficiency and safety. The dataset covers the period 2004–2013, divided into three sub-periods, to reflect the changing macroeconomic conditions. The additional research question is how the ownership structure should be defined, by relating to origin of the capital, or rather type of strategic investor. To address this question, two classifications were adopted for all quantitative analyses. The empirical results confirmed the impact of ownership structure on banks’ decisions, for both classifications, as well as the sensitivity of this relationship to the prevailing macroeconomic conditions.


Keywords


banking sector; ownership structure; financial crisis; Central and Eastern Europe

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References


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DOI: http://dx.doi.org/10.17951/h.2016.50.4.311
Data publikacji: 2017-02-20 17:31:15
Data złożenia artykułu: 2016-07-18 15:05:18


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