Tsakiri, Aikaterini

2020-06-12T00:00:35Z

https://repository.ihu.edu.gr//xmlui/handle/11544/29563

Capital structure

Systemic banks

masterThesis

free

School of Economics, Business Administration and Legal Studies, MSc in Banking and Finance

This dissertation was written as part of the MSc in Banking and Finance at the International Hellenic University. This thesis examines the impact of capital structure on the performance of the banking sector in Greece. The analysis is based on the annual financial statements from 2007- 2018 of the four systemic Greek banks listed on the Athens Stock Exchange (ASE) such as: Alpha Bank S.A., Eurobank Ergasias S.A., National Bank of Greece S.A., Piraeus Bank S.A. Regression analysis has been carried out through the use of Econometric Views (EViews) 9, having Return on Assets (ROA), Return on Equity (ROE) and Earnings per Share (EPS) as performance indicators along with Debt-to-Equity (D/E) and Debt-to-Assets (D/A) ratios as proxies for capital structure, considering profitability as a dependent variable and capital structure as an independent one. Moreover, two control variables, namely the banks’ Size and the banks’ annual Growth rate were also included in the model. The study reveals that capital structure has a significant impact on the banks’ performance and presents mixed results since it concluded that the capital structure has both negative and positive impacts on the banks’ performance. Capital structure was found to have both negative and positive significant relationship with Return on Equity, while Debt to Assets has a significant positive relationship with Return on Assets and Debt to Equity has an insignificant negative relationship with Return on Assets. Accordingly, Return on Assets was found to have insignificant positive relationship with capital structure.

Leventis, Stergios

Kosmidou, Kyriaki

ihu