Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/9638
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dc.contributor.authorMirzaei, A-
dc.contributor.authorLiu, G-
dc.contributor.authorMoore, T-
dc.date.accessioned2014-12-23T15:15:00Z-
dc.date.available2011-10-
dc.date.available2014-12-23T15:15:00Z-
dc.date.issued2011-
dc.identifier.citationEconomics and Finance Working Paper Series, Working Paper No. 11-12, 2011en_US
dc.identifier.urihttp://bura.brunel.ac.uk/handle/2438/9638-
dc.description.abstractWe investigate the effects of market power, banking and bank-environment activities on profitability and stability (risk and returns) for a total of 1929 banks in 40 emerging and advanced economies over the sample period of 1999-2008. The model developed in this paper incorporates the traditional structure-conduct-performance (SCP) and the relative-market-power (RMP) hypotheses with the view to assessing the extent to which the bank performance can be attributed to non-competitive market conditions and pricing behaviour. The key findings are as follows; i) a greater market power leads to higher bank performance being biased toward the RMP hypothesis in advanced economies; ii) more concentrated banking systems in advanced economies may be more vulnerable to financial instability; iii) Neither of the hypotheses seems to be supported for the returns in the emerging banking sector; and iv) higher interest rate spreads increase profitability and stability for both types of economies, however, for emerging banks this seems to be one of the key elements to increase their profitability raising concerns on economies. Other interesting findings include that off-balance-sheet activities appear to present banks with a trade-off between risk and returns in advanced economies, and the effects of bank age, bank ownership status and regulation on risk and returns, depend on market power.en_US
dc.language.isoenen_US
dc.publisherBrunel Universityen_US
dc.subjecteffects of market poweren_US
dc.subjectbankingen_US
dc.subjectbank-environment activitiesen_US
dc.subjectprofitability and stabilityen_US
dc.titleDoes market structure matter on banks' profitability and stability? Emerging versus advanced economiesen_US
dc.typeArticleen_US
dc.relation.isPartOfEconomics and Finance Working Paper Series-
dc.relation.isPartOfEconomics and Finance Working Paper Series-
dc.relation.isPartOfEconomics and Finance Working Paper Series-
dc.relation.isPartOfEconomics and Finance Working Paper Series-
pubs.confidentialfalse-
pubs.confidentialfalse-
pubs.volumeWorking Paper No. 11-12-
pubs.volumeWorking Paper No. 11-12-
pubs.organisational-data/Brunel-
pubs.organisational-data/Brunel/Brunel Staff by College/Department/Division-
pubs.organisational-data/Brunel/Brunel Staff by College/Department/Division/College of Business, Arts and Social Sciences-
pubs.organisational-data/Brunel/Brunel Staff by College/Department/Division/College of Business, Arts and Social Sciences/Dept of Economics and Finance-
pubs.organisational-data/Brunel/Brunel Staff by College/Department/Division/College of Business, Arts and Social Sciences/Dept of Economics and Finance/Economics and Finance-
pubs.organisational-data/Brunel/University Research Centres and Groups-
pubs.organisational-data/Brunel/University Research Centres and Groups/School of Health Sciences and Social Care - URCs and Groups-
pubs.organisational-data/Brunel/University Research Centres and Groups/School of Health Sciences and Social Care - URCs and Groups/Brunel Institute for Ageing Studies-
Appears in Collections:Dept of Economics and Finance Research Papers

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