Ownership Effect on Bank's Performance: Multi Criteria Decision Making Approaches on Foreign and Domestic Turkish Banks

The influence of foreign ownership on bank performance has attracted special attention due to international consolidation and cross-border activities in banking system. Foreign ownership of banks in the developing and transitional countries has increased considerably in recent years. Thus, whether foreign ownership contributes to bank performance in developing countries has emerged as an important question. This study aims to compare the performance of foreign and Turkish banks by using Multi Criteria Decision Making methodologies namely; Topsis, Electre III and Data Envelopment Analysis. Findings declare that foreign banks show better performance than domestic ones. (c) 2013 The Authors. Published by Elsevier Ltd.