<p>This study investigates the direct and indirect relationships between ownership concentration (Own) and performance, using diversification (Div) as a mediator. To test the hypotheses, we apply the PLSPM method to data analysis on a sample of 100 listed European banks from 2009 to 2023. The results indicate that Div fully and complementarily mediates the relationship between Own and performance in European banks. Therefore, banks with concentrated ownership may be better positioned to respond to market changes and competitive pressures, thereby boosting their performance through diversification. Consequently, concentrated ownership can facilitate strategic decision-making, promoting diversification, reducing risks, and enhancing performance. Although previous research has examined the direct link between ownership concentration and performance, this study focuses on both the direct and indirect relationships between ownership concentration and performance, mediated by diversification, a connection that has not been widely explored in European bank studies. This research offers valuable insights for policymakers and banking executives, assisting them in designing ownership and diversification strategies that improve performance and stability in a constantly evolving financial environment.</p>

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The mediating role of diversification strategy in the association between ownership concentration and performance banks

  • Nourhen Sallemi,
  • Rim Zouari-Hadiji

摘要

This study investigates the direct and indirect relationships between ownership concentration (Own) and performance, using diversification (Div) as a mediator. To test the hypotheses, we apply the PLSPM method to data analysis on a sample of 100 listed European banks from 2009 to 2023. The results indicate that Div fully and complementarily mediates the relationship between Own and performance in European banks. Therefore, banks with concentrated ownership may be better positioned to respond to market changes and competitive pressures, thereby boosting their performance through diversification. Consequently, concentrated ownership can facilitate strategic decision-making, promoting diversification, reducing risks, and enhancing performance. Although previous research has examined the direct link between ownership concentration and performance, this study focuses on both the direct and indirect relationships between ownership concentration and performance, mediated by diversification, a connection that has not been widely explored in European bank studies. This research offers valuable insights for policymakers and banking executives, assisting them in designing ownership and diversification strategies that improve performance and stability in a constantly evolving financial environment.