Open AccessMarket structure and profit performance of Banks in Sierra Leone
Author(s) -
Ferdinand Ahiakpor,
Bartholomew David
Publication year - 2015
Publication title -
oguaa journal of social sciences
Language(s) - English
Resource type - Journals
ISSN - 2704-4793
DOI - 10.47963/joss.v7i2.326
Subject(s) - sierra leone , profitability index , market structure , capital structure , profit (economics) , asset (computer security) , efficient market hypothesis , business , monetary economics , economics , industrial organization , finance , microeconomics , stock market , computer science , geography , development economics , debt , context (archaeology) , computer security , archaeology
The study examines the effects of market structure on profitability in the Sierra Leone banking industry. There are two competing hypotheses—the traditional structure–conduct–performance (SCP) hypothesis and the efficiency hypothesis (EH). Using pooled and quarterly data for the period 2006-2011, this study tests the validity of these two hypotheses. In general, the overall results of the study have been mixed. However, capital to asset ratio and expenses to asset ratio are found to influence their performance. But for definitive policy purposes, the impact of the banking structure needs to be explored further.