Shareholder dispersion and performance of Argentine banks

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...

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Autores principales: Dutto, Martín, Narvaez, Marcos, Carlevaro, Emiliano, Jullier, Juan
Formato: Artículo revista
Lenguaje:Español
Publicado: Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2021
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Acceso en línea:https://revistas.unc.edu.ar/index.php/REyE/article/view/36338
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Sumario: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, 2020Acceptance date: October 9, 2021