Browsing by Subject "Relative profitability"
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Item Open Access The relative profitability of Turkish commercial banks: a statistical approach(1992) Bartu, N. CemConceptually, 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.