Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128811
Authors: 
Hahn, Franz R.
Year of Publication: 
2005
Series/Report no.: 
WIFO Working Papers 261
Abstract: 
The paper investigates the determinants of banking profitability and banking market conditions in Austria. We conduct a panel econometric analysis which allows for testing the hypotheses which have become the most prominent in the literature on bank profitability: the structure-conduct-performance hypothesis, the efficient-structure hypothesis and the relative-market-power hypothesis. Further, we test whether Austrian banking markets are, on average, contestable. A newly compiled dataset covering more than 700 Austrian banks ranging over the period from 1995 to 2002 is used to carry out these econometric analyses. The empirical findings support the view that the Austrian banks do exert, on average, some local market power. However, the gains in terms of excess profits are rather minor due to low deterrence powers of the incumbent banks.
Subjects: 
banking performance
banking profitability
banking market structure
panel econometrics
JEL: 
G21
L13
L25
L44
Document Type: 
Working Paper

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