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Information asymmetry and market power in the African banking industry

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  • Boateng, Agyenim
  • Asongu, Simplice
  • Akamavi, Raphael
  • Tchamyou, Vanessa

Abstract

This study investigates the role of information sharing offices and its association with market power in the African banking industry based on a panel of 162 banks from 42 countries for the period 2001–2011. Five simultaneity-robust estimation techniques are employed: Two Stage Least Squares; Instrumental Fixed Effects to control for unobserved heterogeneity; Instrumental Tobit regressions to control for the limited range in the dependent variable; Generalised Method of Moments (GMM) to control for persistence in market power; and Instrumental Quantile Regressions (QR) to account for initial levels of market power.

Suggested Citation

  • Boateng, Agyenim & Asongu, Simplice & Akamavi, Raphael & Tchamyou, Vanessa, 2018. "Information asymmetry and market power in the African banking industry," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 69-83.
  • Handle: RePEc:eee:mulfin:v:44:y:2018:i:c:p:69-83
    DOI: 10.1016/j.mulfin.2017.11.002
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    More about this item

    Keywords

    Information sharing; Market power; Information asymmetry; Africa;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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