Shareholder dispersion and performance of Argentine banks
DOI:
https://doi.org/10.55444/2451.7321.2021.v59.n1.36338Keywords:
ownership structure, agency theory, banks, performanceAbstract
In this paper, we analyze the degree of ownership concentration as a determinant of performance in Argentine banks, measured through return on assets (ROA), return on equity (ROE), and Net Financial Income during the period from 2005 to 2017. Based on panel data analysis, we conclude that there is a negative relationship between ownership concentration and performance. This association is positive for banks with few owners. We argue that controlling owners take excessive risk in banks with lower levels of ownership concentration which results in low returns. Adversely, a less risk taking behavior increases at higher levels of concentration.
Reception date: April 20, 2020
Acceptance date: October 9, 2021
Downloads
References
Basu, R., Druck, P., & Marston, D. (2004). Bank consolidation and performance: The Argentine experience. Documento de trabajo. Recuperado de https://papers.ssrn.com/sol3/papers.cfm?abstract_id=878974
BCRA. (2019). Informe de política monetaria (julio de 2019). Recuperado de https://www.bcra.gob.ar/Pdfs/PublicacionesEstadisticas/IPOM0719.pdf
Cavallo, A., & Bertolotto, M. (2016). Serie Completa de Inflación de Argentina Desde 1943 a 2016 (Filling the Gap in Argentina's Inflation Data). Recuperado de https://dx.doi.org/10.2139/ssrn.2787276
Chalermchatvichien, P., Jumreornvong, S., Jiraporn, P., & Singh, M. (2014). The effect of bank ownership concentration on capital adequacy, liquidity, and capital stability. Journal of Financial Services Research, 45(2), 219-240.
Demsetz, H., & Villalonga, B. (2001). Ownership structure and corporate performance. Journal of Corporate Finance, 7(3), 209-233.
Greene, W. H. (2000). Econometric Analysis. Prentice Hall: New Jersey.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Laeven, L., & Levine, R. (2009). Bank governance, regulation and risk taking. Journal of Financial Economics, 93(2), 259-275.
Magalhaes, R., Gutiérrez Urtiaga, M., & Tribó, J. A. (2010). Banks' ownership structure, risk and performance. Recuperado de https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1102390
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who have publications with this journal agree to the following terms:
Authors retain their copyright and grant the journal the right of first publication of their work, which is simultaneously subject to the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License that allows third parties to share the work provided that its author and first publication in this journal are indicated.
Authors may adopt other non-exclusive licensing arrangements for distribution of the published version of the work (e.g. depositing it in an institutional telematic archive or publishing it in a monographic volume) as long as the initial publication in this journal is indicated.
Authors are allowed and encouraged to disseminate their work via the Internet (e.g. in institutional telematic archives or on their website) before and during the submission process, which can lead to interesting exchanges and increase citations of the published work. (See The Open Access Effect)
