TY  - CHAP
AB  - Abstract This paper studies the impact of ownership structure on performance in European banking both prior and during the recent crisis. We use a panel of European banks during the period 1996–2011 and utilize random effects estimations in order to identify differences in bank performance (profitability, loan quality, and cost efficiency) due to differences in ownership structure. Both stakeholder and shareholder banks have distinct advantages, shareholder banks showing better profitability before the crisis but stakeholder banks having higher loan quality before and during the crisis. Differences in profitability and loan quality between stakeholder and shareholder banks before the crisis are especially pronounced in countries that experienced a banking crisis after 2007. There is strong a heterogeneity in performance between different stakeholder ownership groups. With the exception of private savings banks, profitability and loan quality of stakeholder banks has improved relative to that of general shareholder banks during the crisis years. The paper contributes to the previous literature by comparing pre-crisis and crisis performance and includes more refined ownership classifications. The results indicate that the survival of the stakeholder model is due to its competitive advantages. Our findings provide support for those arguing that the diversity of organizational structures is worth preserving. Ownership pluralism should become a policy objective in the banking industry.
VL  - 16
SN  - 978-1-78560-379-2, 978-1-78560-378-5/0885-3339
DO  - 10.1108/S0885-333920150000016011
UR  - https://doi.org/10.1108/S0885-333920150000016011
AU  - Ferri Giovanni
AU  - Kalmi Panu
AU  - Kerola Eeva
PY  - 2015
Y1  - 2015/01/01
TI  - Organizational Structure and Performance in European Banks: A Reassessment
T2  - Advances in the Economic Analysis of Participatory & Labor-Managed Firms
T3  - Advances in the Economic Analysis of Participatory & Labor-Managed Firms
PB  - Emerald Group Publishing Limited
SP  - 109
EP  - 141
Y2  - 2024/04/16
ER  -