Cost efficiency and risk as determinants of market share in banking: Evidence from the old and new eu member and candidate countries

Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu

Marko Košak¹  Bashkim Nurboja² 

[1] banking management, risk management, financial institutionmarkets;microeconomics of banking, risk management, financial economic;

关键词: bank efficiency;    risk;    market share;   

DOI  :  10.18045/zbefri.2019.2.499

来源: DOAJ

【 摘 要 】

In this study we investigate how cost efficiency and risk affect market share in European banking industry. Our analysis is motivated by the well-known efficiency hypothesisandstructure-conduct-performancetheory.Wehypothesizethat improved efficiency and enhanced riskiness of a bank should be related to an increase in its market share. Therefore, in contrast to other studies, we include risk as a determinant of market share. In the study we use annual data for 36 European countries’ banks for the time span from 2007 to 2015. The results reveal that risk and efficiency are positively associated with market share of assets, loans and deposits.Additionally,wefindthatbanksintransitioncountrieswereless successful in transposing their cost efficiency advantages into market share gains than banks in European developed countries. The empirical model is estimated by using the GMM method in order to account for dynamic nature of investigated components and to mitigate the endogeneity problem.

【 授权许可】

Unknown