Growth and earnings persistence in banking firms: a dynamic panel investigation

This paper investigates (i) whether growth and profitability persist in banking firms, (ii) whether the level and volatility of growth and profitability are bank-size dependent, and (iii) the relationship between growth and profitability of a bank. Using a dynamic panel model estimated by GMM for a...

Full description

Saved in:
Bibliographic Details
Main Authors: Shehzad, Choudhry Tanveer (Author), Haan, Jakob de 1960- (Author), Scholtens, Bert (Author)
Format: Book
Language:English
Published: München CESifo 2009
Series:CESifo working paper 2772 : Category 7, Monetary policy and international finance
Subjects:
Online Access:Volltext
Volltext
Summary:This paper investigates (i) whether growth and profitability persist in banking firms, (ii) whether the level and volatility of growth and profitability are bank-size dependent, and (iii) the relationship between growth and profitability of a bank. Using a dynamic panel model estimated by GMM for a mixed sample of more than 1500 banks from 65 countries, we find no evidence of persistence in bank growth. However, our findings suggest significant persistence in bank profitability. Moreover, our results show that the growth and profitability dynamics of banks based in OECD countries differ from those of banks in non-OECD countries. -- bank size ; bank earnings ; earnings volatility ; bank risk ; Gibrat's law
Physical Description:28 S. graph. Darst.

There is no print copy available.

Interlibrary loan Place Request Caution: Not in THWS collection! Get full text