Mustafa Kevser and Bilge Leyli Elitaş
The aim of this study is to analyze the effects of the ownership structures of banks on their financial performance. The quarterly data of the 13 banks listed on the Istanbul Stock Exchange (BIST) were used for the period from 2005 to 2017. In the study, return on assets (ROA), return on equity (ROE), Tobin’s Q ratio (TOBIN), earnings per share (EPS) and the price/earnings ratio (P/E) were used for the financial performance indicators. Family ownership, corporate ownership, managerial ownership, foreign ownership, the largest shareholder’s ownership, the ownership of the three largest shareholders, and the free-float rate were selected as the independent variables for the study. The leverage ratio, the total assets and the age of the banks were benefited from as the control variables. There are five models formed to analyze the relationship between the variables, and a regression analysis was carried out. The analyses point out the fact that the ownership structures of the banks have an effect on their financial performance. Besides, the results obtained by these analyses are suggested to be coherent for the agency theory as one of the fundamental theories of this subject.
Temitope Olamide Fagbemi1, Taiwo Azeez Olaniyi1 and Ayobolawole Adewale Ogundipe2
Due to the multiplicity and overburdening of Nigeria’s tax system, the economic units in which systemically important banks (SIBs) are included implement the corporate strategies that identify the loophole which minimizes, postpones, or entirely avoids tax payments so as to reduce its negative effect on financial performance. Therefore, this study examined the corporate tax planning and financial performance of systemically important banks in Nigeria. Ex-post facto was adopted as the research design in this study, while Pooled OLS was used to analyze the data. This study has shown that the effective tax rate has a negative and significant impact on financial performance. Thin capitalization has a positive significant impact on the financial performance of SIBs in Nigeria, whereas capital intensity and the lease option have demonstrated an insignificant impact on the financial performance of SIBs in the country. The study concluded that corporate tax planning affects financial performance depending on the adopted tax planning strategies. Likewise, the study recommended, among other things, that the tax authorities should engage in the tax reforms whereby the corporate tax rate is to be adjusted, and that banks should engage in the activities that can reduce the effective tax rate.