Parliamentary election cycles and the Turkish banking sector

Christopher F. Baum, Mustafa Caglayan, Oleksandr Talavera

Research output: Contribution to journalArticlepeer-review

58 Citations (Scopus)

Abstract

This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963–2007, we present evidence of meaningful differences in the structure of bank assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks’ behavior does not meaningfully differ from that of either domestic and foreign-owned private-sector banks before, during or after elections. Our estimates also show that government-owned banks underperform both domestic and foreign-owned private-sector counterparts.
Original languageEnglish
Pages (from-to)2709-2719
Number of pages11
JournalJournal of Banking & Finance
Volume34
Issue number11
DOIs
Publication statusPublished - 2010

Cite this