Is ownership structure effective in taking risks of banks? The case of Turkey

• Published in: Hitit Sosyal Bilimler Dergisi Vol. 13; no. 2; pp. 385 - 407
• Main Authors: Köksal, Oğuz, Babuscu, Şenol, Hazar, Adalet
• Format: Journal Article
• Language: English
• Published: Hitit Üniversitesi Sosyal Bilimler Enstitüsü 31-12-2020; Hitit University Social Sciences Institute; Hitit Üniversitesi
• Subjects: Business Economy / Management; Economic policy; Financial Markets; Political economy; Siyasal Bilimler; Türkiye; Çorum; Consantration; Ownership Structure; Deposit Banks; Risk Taking; Banking; Konsantrasyon; Risk Üstlenme; Mevduat Bankaları; Ortaklık Yapısı; Bankacılık
• ISSN: 1308-5107; 2536-4944
• DOI: 10.17218/hititsosbil.773170

In this study, the relationship between the capital ownership and risk taking tendency of banks is analysed. The data of multi-branch deposit banks from the banks operating during the analysis period were included in the study. The data of each bank for the end of 2008-2017 are taken into consideration. A total of 2800 variables consisting of 14 different variables belonging to 20 deposit banks covering 10 years were used in the analysis. From the 20 banks taken into account in the analysis; 3 are public, 11 are domestic private and 6 are foreign banks with private capital. One of the most striking points in the study is that the derivative financial instruments / equity variable included in the analysis as an independent variable and 3 risk indicators are in a meaningful relationship. In the framework of the data obtained from the analysis, there was no effect of capital ownership and capital concentration on the risk taking tendency of the banks in the Turkish Banking Sector.