The Effect of Ownership Concentration on Liquidity of Banks

Zahra Esmaeili , Zekvan Imani, Ali Homayoon

Abstract


Liquidity is the ability of a bank to obtain cash, to meet current or necessary needs. Banks need to have sufficient liquidity to meet the demand of depositors and facility takers to win the public confidence in this way. For this purpose, financial institutions are required to have an effective asset and debt management system to be able to minimize the maturity mismatching of assets and liabilities and optimize their return. In addition, due to the inverse relationship between liquidity and profitability, creating an appropriate balance between these two indices is also very important. The aim of this study is to investigate the impact of ownership concentration on liquidity in banks. For this purpose, the required data are extracted from the audited financial statements of banks for the period 2007 to 2014. This research is a correlation and the main method of statistical test is regression analysis. The results of testing the research hypotheses show that there is no significant relationship between the concentration of ownership and liquidity of banks.

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References


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Gugerdchian, A., Mir Hashemi Naini, S. S. (2013). Study and test of the performance of Iran's banking system in liquidity management (2001-2009), Journal of Economic Modeling Research, No. 11.

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