چکیده:
Not only in Iran, but throughout the world, banks and banking industry are considered as very important parts of the economy. This study seeks to investigate the impact of the internal characteristics of banks, the structure of the banking industry and the economic situation of Iran on the profitability of the banking system of Iran by exploring the theory of the Structuralism school concerning the impact of structure on profitability. To this end, data relating to 18 private and public banks of Iran during 2003 to 2012 are analyzed by using panel data methods. First, the profitability of the banking system is calculated using relevant indicators; and then, the impact of various internal, structural and environmental factors on bank profitability is evaluated. The results show that internal factors - the amount of capital and the size of the bank - have a positive impact on profitability. Besides, structural factors including market share and concentration are shown to have a positive impact on profitability whereas ownership appears to have no significant impact. Furthermore, inflation and economic cycles – among environmental factors – exhibit a positive impact on profitability.
خلاصه ماشینی:
"This study was carried out in the framework of Structuralism theories based on the contingency of performance on market structure, market conduct, internal organization and external conditions in order to determine factors affecting the profitability of banks in Iran and explore the role of internal factors (capital and the size of bank), market structure (degree of concentration, ownership and market share) and macroeconomic conditions (inflation and the business cycle) in profitability of the banking system.
3. Empirical Studies Conducted This section presents studies conducted on the effect of structural elements (market concentration, share and ownership), internal characteristics of banks (capital and the size of the bank) and environmental factors (inflation and economic cycles) on banks’ profitability: In a studt, Dietrich and Venznyrd (2010), investigated the factors affecting the profitability of banks during and before the crisis by using 372 commercial banks of Switzerland for 1999-2009 period.
Following studies in the field, this study divides the factors affecting profitability into three categories: 1- Internal characteristics of banks including asset size and capital size, 2- Market structure including the degree of concentration, ownership and market share, 3- Variables including inflation and economic cycles that make it possible to examine the impact of macroeconomic conditions on the performance of the banking system.
In the present study, a multiple linear regression model is used to investigate the functional relationship between the selected variables according to the following estimation equation: Yit ci J jxijt L lxilt M mxitmit j1 l1 m1 Whereby: : Profitability index of bank i in time t, : Internal characteristics of the bank, : Market Structure, m xit : Macroeconomic conditions, and; it: Disturbance term; represents the factors that can affect profitability but are not included in the model."