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Government Ownership Effect on Staffing Level and Financial Performance

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  • Musaed Sulaiman AlAli
  • Tariq Saeed

Abstract

It has always been believed that government ownership would lead to bad financial performance and overstaffing in any organization. This study aims to examine the effect of government ownership on staffing level and the financial performance of Kuwaiti bank over the period 2010-2018. Using the financial data of ten banks listed at Kuwait stock exchange (KSE), results shows that there was s statistically significant direct relation between government ownership and overstaffing and statistically significant inverse relation between government ownership and the financial performance of banks measured by return on assets (ROA). On the other hand results show that there was no relation between overstaffing and the financial performance of Kuwaiti banks.

Suggested Citation

  • Musaed Sulaiman AlAli & Tariq Saeed, 2020. "Government Ownership Effect on Staffing Level and Financial Performance," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(3), pages 99-104, March.
    • Handle: RePEc:rbs:ijfbss:v:9:y:2020:i:3:id:836
    DOI: 10.20525/ijfbs.v9i3.836
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    References listed on IDEAS

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    1. James R. Barth & Gerard Caprio Jr. & Ross Levine, 2001. "Banking Systems around the Globe: Do Regulation and Ownership Affect Performance and Stability?," NBER Chapters, in: Prudential Supervision: What Works and What Doesn't, pages 31-96, National Bureau of Economic Research, Inc.
    2. Nandini Gupta, 2005. "Partial Privatization and Firm Performance," Journal of Finance, American Finance Association, vol. 60(2), pages 987-1015, April.
    3. Musaed S AlAli & Sundus Al-Yatama, 2019. "Analyzing the Financial Soundness of Kuwaiti Banks Using CAMELS Framework," Financial Risk and Management Reviews, Conscientia Beam, vol. 5(1), pages 55-69.
    4. Musaed S. AlAli & Sundus Al-Yatama, 2019. "Analyzing the Financial Soundness of Kuwaiti Banks Using CAMELS Framework," Financial Risk and Management Reviews, Conscientia Beam, vol. 5(1), pages 55-69.
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