scholarly journals Size, Efficiency, Market Power, and Economies of Scale in the African Banking Sector

2018 ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas Odhiambo
Keyword(s):  
Market Power ◽  
Economies Of Scale ◽  
Banking Sector ◽  
Size Efficiency

The potential of entry barriers in the context of digitalization

2021 ◽  
Vol 21 (1) ◽  
pp. 128-147
Author(s):  
Aleksey Zazdravnykh
Keyword(s):  
Big Data ◽  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Digital Transformation ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Significant Growth ◽  
Digital Infrastructure ◽  
Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

scholarly journals Does Market Power Affect Banking Dividend Policy? Evidence from Nepal

2021 ◽  
Vol 1 (4) ◽  
pp. 297-306
Author(s):  
Sahadev Bhatt
Keyword(s):  
Market Power ◽  
Banking Sector ◽  
Market Competition ◽  
Influencing Factor ◽  
Commercial Banking ◽  
Agency Conflicts ◽  
Dividend Payment ◽  
Lerner Index ◽  
Asset Growth ◽  
Structural Measure

We attempt to explain how market power impacts bank dividend payment behaviors in Nepal by taking the sample from the commercial banking sector employing a panel data regression model. Using the Lerner Index (LI), a non-structural measure of market power or lack of competition, we found that market power inversely but statistically insignificantly affect dividend payment. This finding leads us to conclude that market power-a proxy of more or less competition is not an important and influencing factor to the dividend decisions in commercial banking sectors signifying that competition does not seem helpful in mitigating agency conflicts. It is also concluded that banking dividend payouts are not the result of the punitive influence of product market antagonism. Further, among other firm-specific determinants, bank size and leverage significantly positively whereas asset growth significantly negatively affect the dividend decision. However, profitability is found insignificant determinant of dividend payment. The paper enriches and contributes to the literature on banking dividend payout and helps to identify the key factors that affect banking dividend decision-making.  Keywords : Banks, Market competition, Market power, Lerner Index, Nepal

scholarly journals Are Multinational Retailers Really Selling at Lower Prices Than Domestic Chains? Evidence from Three Sectors

2018 ◽  
Vol 13 (1) ◽  
pp. 49-82
Author(s):  
José Caraballo-Cueto
Keyword(s):  
Market Power ◽  
Economies Of Scale ◽  
Short Term ◽  
Jel Codes ◽  
The World ◽  
Loss Leader ◽  
Representative Samples

Currently, there is no systematic evidence showing that, 15 years or more after entry, all multinational retailers provide lower prices than domestic buying groups. In the short term, some multinational retailers may lower prices to deter local competitors and attract consumers in a ‘loss leader’ strategy. However, domestic competitors can integrate buying groups to share the benefit of economies of scale with multinational retailers, while holding lower profitability requirements and overhead costs than multinational retailers. We compared multinational retailers to domestic buying groups in a jurisdiction that had one of the highest proportions of Walgreens and Walmart stores in the world. Despite their market power, in our representative samples of goods, there is no evidence that the prices of multinational retailers in the sectors of pharmacies, supermarkets and hardware stores are lower than domestic chains. JEL Codes: M3, R1, L8, F2

scholarly journals Research on market power and market structure

2017 ◽  
Vol 1 (3) ◽  
pp. 210-222 ◽  
Author(s):  
Baowen Sun ◽  
Wenjun Jing ◽  
Xuankai Zhao ◽  
Yi He
Keyword(s):  
Market Power ◽  
Economies Of Scale ◽  
Scale Economy ◽  
The Internet ◽  
Content Type ◽  
Internet Industry ◽  
Empirical Industrial Organization ◽  
Welfare Change ◽  
Internet Platform ◽  
Traditional Industry

Purpose This paper aims to clear whether the monopoly structure of the internet industry has produced market power and discussed the welfare change of the internet industry monopoly. Design/methodology/approach By using new empirical industrial organization methods and taking the e-commerce market as an example, the authors measured market power and economies of scale of the internet platform companies. Findings Internet platform enterprises have formed scale economy, but it has not had market power, and the industry still maintains high levels of competition; also, the emergence of large enterprises may increase the welfare of consumers. Originality/value The conclusion of this paper clarified actual competition status of internet industry and provided a new foothold for regulation and ideas for the traditional industry to crack the Marshall Conflict.

Banking Sector Performance in Latin America: Market Power versus Efficiency

2011 ◽  
Vol 15 (2) ◽  
pp. 307-325 ◽  
Author(s):  
Georgios E. Chortareas ◽  
Jesus G. Garza-Garcia ◽  
Claudia Girardone
Keyword(s):  
Latin America ◽  
Market Power ◽  
Banking Sector ◽  
Sector Performance

COMPETITION-STABILITY RELATIONSHIP IN DUAL BANKING SYSTEMS: EVIDENCE FROM EFFICIENCY-ADJUSTED MARKET POWER

2021 ◽  
pp. 1-24
Author(s):  
MUDEER AHMED KHATTAK ◽  
OMAR ALAEDDIN ◽  
MOUTAZ ABOJEIB
Keyword(s):  
Market Power ◽  
Financial Stability ◽  
Banking Sector ◽  
Market Competition ◽  
Policy Implications ◽  
Islamic Banks ◽  
Banking Competition ◽  
Precise Measure ◽  
Conventional Banks ◽  
The Impact

This research attempts to explore the impact of banking competition on financial stability employing a more precise measure of market power. It was found that Islamic banks are less stable and are enjoying lower market power. The analysis shows that higher market competition makes the banking sector vulnerable to defaults, supporting the “competition-fragility view”. This research finds no difference in the relationship for Islamic banks indicates that Islamic banks might be involved in traditional banking activities as conventional banks. The results are consistent and robust to different estimation approaches and subsamples. This research carries regulatory and policy implications.

scholarly journals Bank-Specific and Macroeconomic Determinants of Profitability: A Revisit of Pakistani Banking Sector under Dynamic Panel Data Approach

2020 ◽  
Vol 8 (3) ◽  
pp. 42 ◽  
Author(s):  
Habib-ur Rahman ◽  
Muhammad Waqas Yousaf ◽  
Nageena Tabassum
Keyword(s):  
Panel Data ◽  
Interest Rates ◽  
Economies Of Scale ◽  
Banking Sector ◽  
Unobserved Heterogeneity ◽  
Dynamic Panel Data ◽  
Capital Adequacy ◽  
Bank Failures ◽  
Dynamic Panel ◽  
Macroeconomic Determinants

This study aims to examine the effect of the bank-specific and macroeconomic determinants of profitability for the banking sector of Pakistan. To incorporate the issues of endogeneity, unobserved heterogeneity, and profit persistence, we apply a generalised method of moments (GMM) technique under the Arellano–Bond framework to a panel of Pakistani banks that covers the period 2003–2017. The results of a dynamic panel data approach reveal that capital adequacy accelerates the profitability of the banking sector in Pakistan. Capital adequacy helps the financial system to absorb any negative shock by reducing the number of bank failures and losses. Conversely, our empirical investigation reveals that the liquidity ratio, business mix indicators, interest rates, and industrial production deteriorates the bank profitability. Liquidity risks enhance the probability of default risks and transmit into the unpaid loans and hence the lower return. Our empirical evidence further reveals that Pakistani banks are not getting any benefit of the economies of scale in terms of financial performance.

scholarly journals Bank Competition, Efficiency, and Stability in Macau

2019 ◽  
Vol 8 (4) ◽  
pp. 157
Author(s):  
Harry Xia ◽  
Kevin Lei ◽  
Jiaochen Liang
Keyword(s):  
Economies Of Scale ◽  
Banking Sector ◽  
Banking System ◽  
Bank Loans ◽  
Bank Competition ◽  
Income Volatility ◽  
Bank Efficiency ◽  
Insolvency Risk ◽  
Relationship Of ◽  
The Relationship

Macau has the uppermost population density and the fourth-highest GDP per capita in the world. Macau’s banking system is regarded as one of the most important indicators of Macau’s macroeconomic growth and stability during its transformation into a wealthy and modern metropolis. In this study, we use a sample of 26 banks to explore the relationship of bank competition, efficiency and stability in Macau from its return to China in 1999 to 2016. Our results demonstrate that bank competition does cause efficiency in Macau throughout the study period. We also find indications of a positive but not significant connection between bank market power and bank fragility including income volatility and insolvency risk. Moreover, this study finds no evidence that the size of operations proxied by total bank loans and total assets would impact bank efficiency, indicating that economies of scale or bank market share don’t necessarily bring about efficiency in Macau. Our evidence contributes to the literature by being the first to thoroughly examine the relation of bank competition, efficiency and stability in Macau. The findings provide meaningful implications to the practitioners and policymakers to make sound decisions accordingly, especially to closely monitor and maintain a proper level of competition in Macau’s banking sector.

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