This paper provides an empirical investigation on the way in which
ownership structure influences bank performance. The impact of ownership
concentration and the type of ownership on bank performance have been
analyzed using four different profitability measures. The results show that in
Pakistan the ownership concentration has S-shaped impact on bank
performance. Insider ownership and bank performance also has S-shaped
relationship. Among various types of ownerships, government ownership has
a significant negative impact on bank performance whereas family
ownership and institutional ownership have a significant positive impact on
bank performance. The impact of foreign ownership on bank performance is
inverse U-shaped. The findings of this paper suggest that type of ownershipThis paper provides an empirical investigation on the way in which
ownership structure influences bank performance. The impact of ownership
concentration and the type of ownership on bank performance have been
analyzed using four different profitability measures. The results show that in
Pakistan the ownership concentration has S-shaped impact on bank
performance. Insider ownership and bank performance also has S-shaped
relationship. Among various types of ownerships, government ownership has
a significant negative impact on bank performance whereas family
ownership and institutional ownership have a significant positive impact on
bank performance. The impact of foreign ownership on bank performance is
inverse U-shaped. The findings of this paper suggest that type of ownership
matters in explaining bank performance in Pakistan.
matters in explaining bank performance in Pakistan.
