[Home ] [Archive]    
:: Volume 11, Issue 4 (Fall 2016) ::
J. Mon. Ec. 2016, 11(4): 443-466 Back to browse issues page
Relationship between Structure and Performance in the Banking Industry of Iran
Akbar Najahi 1, Yeghaneh Mousavi Jahromi2, Farhad Khodadadkashi2, Gholamali Haji1
1- Department of Economics, Islamic Azad University, Arak Branch
2- Department of Economics, Payam-e Noor University
Abstract:   (1774 Views)

The purpose of this study is to investigate the causal relationship between the structure and performance in the banking industry of Iran. In doing so, the data and information of public and private banks from 1996 to 2015 is examined using Toda-Yamamoto causality test (TY) and Autoregressive Distributed Lag (ARDL) approach. Herfindahl-Hirschman index (HHI) (the degree of market concentration) trend shows that over the last two decades, the degree of concentration has reduced. In other words, the structure of banking industry has moved away from monopoly conditions towards competitive markets. The degree of profitability and the ratio of net return on assets (ROA) are used for the performance of banking industry. According to the results, the banks' profitability rate has been increasing over the years under study. The results of Toda-Yamamoto causality test (TY) and Autoregressive Distributed Lag (ARDL) approach also show that in the banking industry of Iran, both in the short term and long term, there is a one-way causal relationship from performance to structure. In other words, the structuralist theory of the banking industry of Iran is not approved and the Chicago School theory of the causal relationship between performance and structure cannot be rejected.

Keywords: Market Structure, HHI, Performance, ARDL, Toda-Yamamoto Causality Test
Full-Text [PDF 345 kb]   (1053 Downloads)    
Type of Study: Original Research - Theoric | Subject: Economics
Received: 25 Jun 2018 | Accepted: 4 Sep 2018 | Published: 9 Dec 2018
Add your comments about this article
Your username or Email:

CAPTCHA


XML     Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Najahi A, Mousavi Jahromi Y, Khodadadkashi F, Haji G. Relationship between Structure and Performance in the Banking Industry of Iran. J. Mon. Ec.. 2016; 11 (4) :443-466
URL: http://jme.mbri.ac.ir/article-1-277-en.html


Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Volume 11, Issue 4 (Fall 2016) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
Persian site map - English site map - Created in 0.06 seconds with 29 queries by YEKTAWEB 4341