The effect of bank ownership concentration on capital adequacy and liquidity

• Main Authors: Masoumeh Delbariragheb, Nowrouz Nourallah Zadeh
• Format: Article
• Language: English
• Published: Growing Science 2015-08-01
• Series: Management Science Letters
• Subjects: Ownership concentration; Capital adequacy; Liquidity; Banking industry
• Online Access: http://www.growingscience.com/msl/Vol5/msl_2015_72.pdf

This paper presents an empirical investigation to study the effect of bank ownership concentration on capital adequacy and liquidity on 14 selected private Iranian banks located in city of Tehran, Iran. The study uses a linear regression model where ownership concentration is independent variable, size, leverage, growth domestic product and revenue growth are control variables and liquidity and capital adequacy are dependent variables. Using historical information over the period 2010-2013, the study has determined a negative and meaningful relationship between liquidity and ownership concentration. However, the study has determined a positive and meaningful relationship between capital adequacy and ownership concentration.