Bank Ownership and Corporate Performance: Evidence from Egypt
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Islam Azzam
Previous studies conclude that bank ownership in developed markets improves firms' performance while in large emerging markets it promotes firm access to bank loans and lowers performance. We examine the effect of bank ownership on firms' performance and their access to bank loans in Egypt. We also look at the factors that affect bank presence in a firm. Our study finds that bank ownership in a firm improves its financial performance and lowers its access to bank loans. We show that banks in Egypt are not likely to cherry pick the best performance firms. Our results find that banks prefer to own equity in firms with better financial performance, lower debt, and higher collateral assets. Additionally, public ownership concentration hurts performance and discourages banks ownership.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Technology, Political Economy, and Economic Development in the Middle East and North Africa
- Viability of Keeping a Fixed Exchange Rate in an Oil Exporting Country: Some Results for Libya from a Computable General Equilibrium Model
- The Effects of Regional Trade Arrangements on Agri-Food Trade: An Application of the Gravity Modeling Approach to the Arab Gulf Cooperation Council (GCC) Countries
- The Best Asset Pricing Model for Estimating Industry Costs of Equity in Tunisia
- Bank Ownership and Corporate Performance: Evidence from Egypt
Articles in the same Issue
- Article
- Technology, Political Economy, and Economic Development in the Middle East and North Africa
- Viability of Keeping a Fixed Exchange Rate in an Oil Exporting Country: Some Results for Libya from a Computable General Equilibrium Model
- The Effects of Regional Trade Arrangements on Agri-Food Trade: An Application of the Gravity Modeling Approach to the Arab Gulf Cooperation Council (GCC) Countries
- The Best Asset Pricing Model for Estimating Industry Costs of Equity in Tunisia
- Bank Ownership and Corporate Performance: Evidence from Egypt
