Understanding the determinants of bank profitability among PSE listed universal and commercial banks from 1999-2010: Test for market structure versus efficient structure

• Main Authors: Flores, Mart Jasper I., Griar, Marie Stephanie Therese A., Naval, Jilian Dane M., Villanueva, Madeline Joanna L.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Bank profits > Philippines; Banks and banking > Philippines; Universal banks > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18357
• Institution: De La Salle University

Market power versus efficient structure hypothesis tests is being made throughout the world to test profitability of banks. This paper uses listed universal and commercial banks in the Philippine Stock Exchange from 1991-2010 to identify major determinants of bank profitability and determine which between the two hypotheses is favored by the Philippine setting. The test is conducted using panel regression. Results show that the Philippine setting favors the efficient structure hypothesis.