Testing the concentration-performance relationship in the Tunisian banking sector (p.41-62)  [Fichier PDF]
Abdelaziz Hakimi, FSJEG Jendouba
Helmi Hamdi, CERGAM, Aix-Marseille University
Mouldi Djelassi, ESSEC Tunis and LEO- Orléans
Keywords : Concentration, Performance, Liberalization, Tunisians banks, Panel data.
JEL classification : G21, G34, L10, L11, C51
The aim of this paper is to investigate whether concentration affects profitability of the Tunisian banking sector for the period 1980-2009. Our sample is made up of 9 banks and our empirical analysis is based on panel data analysis. In this paper, profitability is measured by the conventional return on equities (ROE) and return on assets (ROA). In the robustness checks we add net interest margin (NIM) as a third indicator of profitability. The main results of the paper reveal that concentration has positive impacts on Tunisian banking profitability. More, the adoption of the various industrial strategies by Tunisian banks was advantageous for the banking sector and for the economy as a whole.