Open AccessImpact of Market Concentration on the Profitability of Lithuanian Banking Sector
Author(s) -
Vaida Rinkevičiūtė,
Raimonda Martinkutė-Kaulienė
Publication year - 2014
Publication title -
verslas: teorija ir praktika
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.369
H-Index - 17
eISSN - 1822-4202
pISSN - 1648-0627
DOI - 10.3846/btp.2014.25
Subject(s) - profitability index , lithuanian , index (typography) , competitor analysis , business , market concentration , return on equity , equity (law) , banking industry , financial system , industrial organization , finance , market structure , marketing , computer science , linguistics , philosophy , political science , law , world wide web
The performance of the bank can be measured in many different ways. However, profitability is the primary instrument depending on various factors one of which is market structure having the most significant indicator – industry concentration that can be defined as the number and distribution of competitors with reference to a simple index. The conducted research is based on the most frequently used concentration measures: the HerfindahlHirschman index, the k bank concentration ratio and profitability indicators such as return on assets and return on equity. The analysis of the results of changes in the ratios of banking sector concentration and profitability has disclosed no direct connection between these indexes