IDEAS home Printed from https://ideas.repec.org/a/eme/imefmp/v6y2013i1p43-50.html
   My bibliography  Save this article

Foreign ownership and bank performance metrics in Saudi Arabia

Author

Listed:
  • Abraham Abraham

Abstract

Purpose - This paper aims to examine the performance metrics of Saudi banks against the background of the proportion of foreign ownership. Design/methodology/approach - One of the empirical challenges in addressing small developing markets is the analysis of small samples. The current study looks at a population of ten publicly traded banks in Saudi Arabia over a two‐year period. While the results of traditional parametric tests of difference are reported, the study also employs more robust distribution free non‐parametric tests of differences in location measures between the two groups. Findings - Surprisingly though, the evidence provided in this paper shows that while banks with foreign ownership are indeed more aggressive in terms of capital structure, loan portfolios and regulatory tier 1 capital, they are unable to translate these into higher performance outcomes. Research limitations/implications - One limitation is drawing inferences from small samples. The study overcomes this by using non‐parametric methods. Practical implications - The study provides potential investors in the Middle‐Eastern region with information about the banking sector in Saudi Arabia. Social implications - The results of the study may provide banking regulators with insights into the behavior of foreign owned banks in developing countries. Originality/value - This is the first study that looks at this very important sector in the largest country within the GCC.

Suggested Citation

  • Abraham Abraham, 2013. "Foreign ownership and bank performance metrics in Saudi Arabia," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 6(1), pages 43-50, March.
  • Handle: RePEc:eme:imefmp:v:6:y:2013:i:1:p:43-50
    DOI: 10.1108/17538391311310734
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/17538391311310734/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/17538391311310734/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/17538391311310734?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Cong & Mehmood, Rashid & Palma, Alessia & Wang, Zhen, 2024. "The impact of culture and religion on financing decisions: Moderating role of CSR," Research in International Business and Finance, Elsevier, vol. 70(PB).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:imefmp:v:6:y:2013:i:1:p:43-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.