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The Research Of Profitability Persistence In Turkish Banking Sector


  • Alper Aslan
  • Omer Iskenderoglu

    () (Nevsehir University
    Nigde University)


It’s expected that the increasing competition will influence the firms on many ways. Under the competitive environment, firm’s abnormal profits will erode. On this context, profitability of competing firms will not be persistent in the long run and therefore decrease. The hypothesis which proposes that, under competition conditions the profits over the norms will decrease has been tested on many empirical studies. In this study Persistence of Profitability (PP) is researched by Return on Assets (ROA) data on a panel model for 25 surviving Turkish banks for the period 1998 – 2009, by Seemingly Unrelated Regression (SUR) and MADF (Multivariate Augmented Dickey Fuller) tests. The results indicate that the competition affects the profitability and profitability is not persistent in Turkish banks.

Suggested Citation

  • Alper Aslan & Omer Iskenderoglu, 2012. "The Research Of Profitability Persistence In Turkish Banking Sector," Anadolu University Journal of Social Sciences, Anadolu University, vol. 12(2), pages 59-68, June.
  • Handle: RePEc:and:journl:v:12:y:2012:i:2:p:59-68

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    References listed on IDEAS

    1. Bičáková, Alena & Slacalek, Jiri & Slavík, Michal, 2008. "Labor supply after transition: evidence from the Czech Republic," Working Paper Series 887, European Central Bank.
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    5. Blomquist, N. Soren, 1983. "The effect of income taxation on the labor supply of married men in Sweden," Journal of Public Economics, Elsevier, vol. 22(2), pages 169-197, November.
    6. D. Tondani, 2006. "Estimating the effects of personal income tax on labour supply in Italy," Economics Department Working Papers 2006-EP03, Department of Economics, Parma University (Italy).
    7. Alena Bièáková & Jiøí Slaèálek & Michal Slavík, 2011. "Labor Supply after Transition: Evidence from the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 61(4), pages 327-347, August.
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    More about this item


    Competition; Persistence of profit; Turkish Banking System; SUR; MADF.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G2 - Financial Economics - - Financial Institutions and Services


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