The Effect of Scale and Mode of Ownership on the Turkish Banking Sector Financial Performance
In this study, a financial performance index is calculated for the 1989-1998 period in order to analyze the profit generating capability of Turkish commercial banks, observe the effect of scale and mode of ownership on bank behavior and therefore bank performance. Another purpose of the study is to compare the financial performance of the time period over time. In order to construct a composite performance index, five fundamental financial ratios are selected. Assuming that these ratios are indicative of the financial performance of a bank, the Data Envelopment Analysis (DEA) which is a linear programming based technique for measuring the relative performance of organizational units is used. Since DEA method assesses the relative performance, DEA based performance index is calculated from a pool of ten years data to be able to do a meaningful comparison between years. After the DEA scores are obtained, yearly averages for all banks in the sample, yearly averages according to their mode of ownership and according to scale are calculated. Then, the average scores are compared for the considered time period.
Year of publication: |
2000
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Authors: | Mercan, Muhammet ; Yolalan, Reha |
Published in: |
Istanbul Stock Exchange Review. - Research Department. - Vol. 4.2000, 15, p. 1-26
|
Publisher: |
Research Department |
Saved in:
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