Commercial Bank Performance and Ownership Concentration: An Empirical Analysis of Commercial Banks from a Global Perspective

Abstract

This paper examines the relationship between ownership concentration and bank performance. In order to verify the linear or nonlinear relationship between bank performance and ownership concentration, we select the data of the top 100 commercial banks in the BVD-Bankfocus database for regression analysis. The study found that there is no significant correlation between ownership concentration and bank performance, whether it is linear or nonlinear. Besides it found that the better the economic environment, the better the performance of commercial banks; the higher the leverage ratio, the higher the profitability, and the better the bank performance. It also found there is no correlation between bank performance and bank size.