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Determinants of winning and losing persistence in the Polish banking sector

Author

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  • Krzysztof Jackowicz

    (Finance Department, Kozminski University (Akademia Leona Koźmińskiego w Warszawie))

Abstract

The article explores the reasons for winning and losing persistence in the Polish banking sector in the 1994–2005 period. It empirically verifies four hypotheses. They associate the performance persistence with market power, informational opacity, ownership structure, as well as with different operational and risk profiles of banks. Estimation of probit models led to the conclusion that in Poland market power related to the developed distribution channels and informational opacity make winning persistence more likely while preventing losing persistence from occurring. Furthermore, foreign-controlled banks have more chances to succeed repeatedly and avert subsequent failures. The picture of performance persistence in the Polish banking sector is biased by banks’ earnings management, especially by the avoidance of reporting small losses.

Suggested Citation

  • Krzysztof Jackowicz, 2009. "Determinants of winning and losing persistence in the Polish banking sector," Bank i Kredyt, Narodowy Bank Polski, vol. 40(3), pages 5-23.
    • Handle: RePEc:nbp:nbpbik:v:40:y:2009:i:3:p:5-23
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    File URL: https://bankikredyt.nbp.pl/content/2009/03/bik_03_2009_01_art.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dariusz Filip, 2011. "Performance Persistence of Equity Funds in Hungary," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 5(1), March.
    2. Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2013. "The influence of political factors on commercial banks in Central European countries," Journal of Financial Stability, Elsevier, vol. 9(4), pages 759-777.
    3. Krzysztof Jackowicz & Oskar Kowalewski & Łukasz Kozłowski, 2011. "The Short and Long Term Performance Persistence in the Central European Banking Industry," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 5(4), December.

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    More about this item

    Keywords

    performance persistence; banking system; emerging markets;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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