Relationship between commercial banks’ financial performance and their ownership structure

Abstract

The study examines the relationship between commercial banks financial performance and their ownership structure. We distinguish between private banks, government banks, foreign banks, domestic banks, widely held and closely held banks where the top 10 shareholders hold more than 50% of the shares. The empirical work analyses data on banks operating between 2004 and 2008 in Kenya. We use regression analysis to determine the relationship between the two independent variables (performance and ownership structure).