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The Impact of Size and Growth Decisions on Turkish Banks' Profitability

Author

Listed:
  • Ozcan Is k

    (Department of Banking and Finance, Cumhuriyet University, Sivas, Turkey)

  • Merve Kosaroglu

    (Department of Banking and Finance, Cumhuriyet University, Sivas, Turkey)

  • Ayhan Demirci

    (Department of International Trade and Logistics, Toros University, Mersin, Turkey)

Abstract

The aim of this study is to examine whether bank profitability is affected by the decisions regarding bank size and growth rate. All parameter estimates of regression models are based on fixed-effect panel regression analyses. Our data covers all banks publicly traded on the BIST during the period 2009Q1-2016Q1. Our empirical findings show that there exists a nonlinear (concave) association between different size measures and profitability. In spite of the fact that growth rate tend to be positively associated with profitability, the impact of this variable is not statistically significant.

Suggested Citation

  • Ozcan Is k & Merve Kosaroglu & Ayhan Demirci, 2018. "The Impact of Size and Growth Decisions on Turkish Banks' Profitability," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 21-29.
    • Handle: RePEc:eco:journ1:2018-01-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Turkish Banking Sector; Bank Size; Growth Rate; Profitability;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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