Do partially privatised banks lag behind in performance? A case study on VakιfBank
by S. Ahmet Menteş
J. for Global Business Advancement (JGBA), Vol. 5, No. 4, 2012

Abstract: This study analyses the privatisation of VakιfBank in which the state (Turkey) retained majority control after the privatisation. In this context, the study compares post-privatisation financial performance of the bank with its privately owned competitors. Findings of the previous studies on the subject suggest that retained state control after privatisation will result in only modest (marginal) performance improvements. The study predicts that VakιfBank is not an exception and hypothesises VakιfBank's post-privatisation performance improvement to be modest compared with its privately owned competitors. Four different hypotheses for the four selected performance measures are constructed to test the post-privatisation performance of VakιfBank. However, the findings reveal that VakιfBank is an exception and achieved significant improvements in three of the four performance measures compared with its privately owned competitors. The study discusses the reasons behind the findings and the governance-related risks that VakιfBank investors face.

Online publication date: Tue, 19-Mar-2013

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