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Bank rebranding and depositor loyalty

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  • M. DISLI

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  • K. SCHOORS

Abstract

We analyze how rebranding affects depositor discipline in a sample of Turkish banks. Depositor discipline refers to the empirical regularity that banks with higher capitalization attract more deposits at lower cost. Bank rebranding tends to increase depositor discipline, especially when there is only a small cosmetic change to the name. Rebranding a Turkish named bank into a foreign named one is associated with increased depositor discipline. In a similar manner, depositor discipline tends to decrease in the short-run if the bank rebrands from a foreign name to a Turkish one. These results suggest the presence of depositor ethnocentrism. Our main findings are robust to controls for major ownership changes and for selection effects.

Suggested Citation

  • M. Disli & K. Schoors, 2013. "Bank rebranding and depositor loyalty," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/867, Ghent University, Faculty of Economics and Business Administration.
  • Handle: RePEc:rug:rugwps:13/867
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    Cited by:

    1. repec:kap:jfsres:v:51:y:2017:i:2:d:10.1007_s10693-016-0248-z is not listed on IDEAS
    2. Ahmet F. Aysan & Mustafa Disli & Meryem Duygun & Huseyin Ozturk, 2017. "Islamic Banks, Deposit Insurance Reform, and Market Discipline: Evidence from a Natural Framework," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(2), pages 257-282, April.
    3. repec:scn:025886:17018063 is not listed on IDEAS

    More about this item

    Keywords

    depositor discipline; rebranding; banks;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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