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Irmak Yaka (LUISS)

8 November 2017 at 12:01 PM - 1:30 PM

Room 404a, Campus on Viale Romania, 32

Speaker: Irmak Yaka, LUISS

Title: The effect of foreign ownership on competition: Evidence from the Turkish banking industry

 
Abstract: Within the liberalization of the financial markets, foreign direct investment activities have grown very quickly especially in the banking sector. Acquisition by foreigners has been linked to introduction of new technology and expansions in products and service range. This suggests that the inflow of foreign capital can alter the competitive structure of an industry.  I plan to investigate the quantitative importance of this phenomenon using data from the Turkish banking industry which after a process of liberalization after 1980s saw entry of foreign capitals in Turkish banks. To measure the competition upon increase in foreign ownership, I will use the Panzar and Rosse model that allows to test for market structure relying solely on information from the financial statements of the banks.Best regards,