Persistence of profit in Turkish banking firms: Evidence from panel lm tests
Abstract
This paper examines the persistence of profit within Turkish banking system for the period 1998:1 2009:4 by focusing on both net income after tax to total assets (ROA) and net income after tax to total equity (ROE) as profit measures by utilizing panel LM unit root test. We found that competition among surviving banks is high within the Turkish banking system for the studied peri od. When we compare ROA and ROE results in terms of persistence, competition is higher in Turkish banking system for ROE than for ROA.