Commercial Banking Profitability in Post Communist Countries: The Role of Entrepreneurship: 1990-2004
22 Pages Posted: 30 Nov 2009
Date Written: November 29, 2009
Abstract
The contribution of the present paper is twofold. First, it introduces a practical estimation of banking entrepreneurial reward (remuneration) and uses it as a variable in order to estimate its effect on bank profitability (in the capitalistic countries as well as in the post communist ones). Second, it points out that post communist countries start to behave as capitalists in the banking sector, since it is shown that entrepreneurship has a positive impact on banking profitability. Each country is regarded as a commercial banking sector. All variables of the model refer to an annual average country level for the period 1990-2004. Panel data are elaborated by using the Eviews software package.
Keywords: bank profitability, interest rates, prices, entrepreneurship, post communist countries, models with panel data
JEL Classification: G20, E43, E31, L26, P2, C23
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