This paper examines vertical integration and its impact on profitability and shareholder value in the global banking industry. We derive a measure for vertical integration using a sample of 859 banks from 9 Anglo-Saxon and European countries covering the timeframe 1997-2002. Our results suggest that banks either operating on highly integrated or highly disintegrated levels of vertical integrati...

This paper empirically investigates the link between political patronage and bank performance for Ukraine during 2003Q3–2005Q2. We find significant differences between politically affiliated and non-affiliated banks. The data suggest that affiliated banks have significantly lower interest rate margins and increase their capitalization. Furthermore, we show that the level of activity of affiliat...

This paper analyzes productivity with a directional distance function model by investigating convexity and non-convexity in the Chinese banking sector. Two primary findings are summarized. First, there is a distinct change in productivity between large versus small banks and public versus nationwide joint-stock banks; the economies of scale and public orientation of the Chinese economy affect t...

for banks and financial institutions, credit risk had been an essential factor that needed to be managed well. credit risk was the possibility that a borrower of counter party would fail to meet its obligations in accordance with agreed terms. credit risk; therefore arise from the bank’s dealings with or lending to corporate, individuals, and other banks or financial institutions.  credit risk...

This paper empirically investigates the link between political patronage and bank performance for Ukraine during 2003Q3–2005Q2. We find significant differences between politically affiliated and non-affiliated banks. The data suggest that affiliated banks have significantly lower interest rate margins and increase their capitalization. Furthermore, we show that the level of activity of affiliat...

The main objectives of this paper are to measure the technical efficiency levels of Iranian banks and to investigate the degree of factors influence on the efficiency in these banks. Stochastic frontier analysis (SFA) methods are applied to bank-level data over 22 years (from 1995 to 2011). We find that publicly-owned banks obtain average technical efficiencies of 0.73, which is lower than priv...

The federal tax code creates challenges for comparing the profit rates of different banks on a consistent basis. The earnings of banks that elect to operate under subchapter S of the federal tax code are not subject to federal corporate income tax, but shareholders of these “S-banks” are taxed on their pro rata share of the entire earnings of the bank. The number of banks electing subchapter S ...

Banks are an important source of funding in economies all around the world, making it vital to understand how banks directly and indirectly affect funding through capital markets. Few issues have perhaps been as controversial as the appropriate scope of bank activities and whether banks should participate directly in capital market activities, providing both lending and other services, such as ...

he topic of corporate governance in general, and topmanagement compensation in particular, has received enormous attention in recent years.1 Although an increasing literature has examined various aspects of the corporate governance of manufacturing firms in the United States and abroad, the corporate governance of banks and financial institutions has received relatively less focus. Alignment of...