Testing the Factors that Determine the Profitability of Banks with a Dynamic Approach: Evidence from Turkey

dc.contributor.authorDoğan, Mesut
dc.contributor.authorYıldız, Feyyaz
dc.date.accessioned2023-07-26T11:59:19Z
dc.date.available2023-07-26T11:59:19Z
dc.date.issued2023
dc.departmentDÜ, İşletme Fakültesi, İşletme Bölümüen_US
dc.description.abstractThe present study aims to identify the internal and external factors that affect the profitability of banks operating in Turkey. For this purpose, the study used data from 23 public, private, and foreign banks, covering the period from 2007 to 2020. Two dependent variables were used as the profitability indicators of banks, namely, the Return on Equity (ROE) and the Return on Assets (ROA). In order to increase the reliability of the models developed during the study, Dynamic Generalized Method of Moments (GMM) and Fixed Effect Model (FEM) were applied. Results of the analysis indicate a positive and statistically significant relation between inflation rate and GDP growth rate, and ROA and ROE. According to the results of GMM, there was a positive relation between ROA and ROE, and 1-year and 2-year lagged ROA and ROE. This situation may be explained by the fact that profits acquired in the Turkish banking sector are steady. ROA and ROE were observed to have a positive relation with inflation rate and economic growth rate. In other words, the increase in inflation rate and GDP growth rate positively affect profitability of public, private, and foreign banks.en_US
dc.identifier.doi10.2478/jcbtp-2023-0010
dc.identifier.endpage248en_US
dc.identifier.issn1800-9581
dc.identifier.issn2336-9205
dc.identifier.issue1en_US
dc.identifier.scopus2-s2.0-85146690118en_US
dc.identifier.scopusqualityQ3en_US
dc.identifier.startpage225en_US
dc.identifier.urihttps://doi.org/10.2478/jcbtp-2023-0010
dc.identifier.urihttps://hdl.handle.net/20.500.12684/13680
dc.identifier.volume12en_US
dc.identifier.wosWOS:000918141800010en_US
dc.identifier.wosqualityQ3en_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.institutionauthorYıldız, Feyyaz
dc.language.isoenen_US
dc.publisherSciendoen_US
dc.relation.ispartofJournal of Central Banking Theory and Practiceen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.snmz$2023V1Guncelleme$en_US
dc.subjectBank Profitability; Turkish Banking; Dynamic Approachen_US
dc.titleTesting the Factors that Determine the Profitability of Banks with a Dynamic Approach: Evidence from Turkeyen_US
dc.typeArticleen_US

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