The relative profitability of Turkish commercial banks: a statistical approach
Author(s)
Advisor
Muğan, Can ŞimgaDate
1992Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
117
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26
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Abstract
Conceptually, every banking decision should be considered for its impact on the
maximization of shareholder wealth. However, in a world of uncertainity, regulation,
and limited action-reaction time and limited resources, it is not possible to follow the
conceptually correct approach for the multitude of decisions bankers face. One
practical approach to the complex, interactive nature of bank decisions is to
disaggregate this system of interrelations into key operational variables.
This study analyzes the differential effects of the selected key variables - management,
size, stewardship, time - on commercial bank profitability in Turkey and the operating
relationships through which these effects are transmitted and relative profitability
determined.
Overall, the study shows that all variables tested are significant. Each variable
significantly affects relative profitability and the majority of operating relationships that
determine profitability. Also notable, is the extreme influence of these effects on
particular relationships.