The short and long term performance persistence in the Central European banking industry

This article investigates the scale of performance persistence in the Central European banking industry. Contrary to the existing literature, we test not only for the short-term performance persistence but we propose also a novel method of analyzing the long-term persistence. Using an extensive data...

Full description

Saved in:
Bibliographic Details
Published in:Contemporary Economics 2011-12, Vol.5 (4), p.18-31
Main Authors: Jackowicz, Krzysztof, Kowalewski, Oskar, Kozłowski, Łukasz
Format: Article
Language:English
Subjects:
Bank acquisitions & mergers
Banking industry
Banking system
banks profitability
Central Europe
Competitive advantage
Economic policy
emerging economies
Equity
Equity funds
Financial institutions
Hypotheses
Institutional investments
Macroeconomics
performance persistence
Profitability
Size of enterprise
Studies
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This article investigates the scale of performance persistence in the Central European banking industry. Contrary to the existing literature, we test not only for the short-term performance persistence but we propose also a novel method of analyzing the long-term persistence. Using an extensive dataset, covering the 1992-2009 period, we establish that banks' results are strongly persistent in two-years sub-periods as well as in the long-run. Moreover, we find that the strength of studied phenomenon is not significantly influenced by the macroeconomic environment, banks size and capital base and country-specific factors.
ISSN:1897-9254
2084-0845
2300-8814
DOI:10.5709/ce.1897-9254.25