The Combined Influence of Market Concentration and Shares on Banking Performance: Insights from Jordan
نویسندگان
1 Department of Accounting, Business School, University of Jordan, Amman, Jordan
2 Department of Accounting, Business School, University of Jordan, Amman, Jordan
3 Department of Accounting, Business School, University of Jordan, Amman, Jordan
doi
10.22059/ijms.2025.383545.677089چکیده
This study investigates how market shares and concentration affect banks' performance on the Amman Stock Exchange. We employed regression analysis on a complete dataset from 2012 to 2022. We look at the Herfindahl-Hirschman Index (HHI) to analyse how market concentration and each bank's share affect their performance. The research findings indicated a positive relationship between market shares and banks’ performance, as well as a positive relationship between market concentration and banks’ performance. These results support the structure-conduct-performance (SCP) and relative market power (RMP) hypotheses. The findings have significant implications for policymakers, regulators, and banking practitioners aiming to enhance the banking sector's efficiency, competitiveness, and resilience in emerging markets.
