Determinants of bank performance in the context of crisis: A panel data analysis for Portugal
Autor(a) principal: | |
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Data de Publicação: | 2020 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/26313 |
Resumo: | Purpose: This research aims to study the determinants of the performance of the Portuguese banking sector, in the period between 2005 and 2011, characterized by economic downturn and by the bailout of Portuguese economy. Design/Methodology/Approach: Bank performance is measured through Return on Assets (ROA) and Return on Equity (ROE), following the studies that relies on financial statements. We test the impact of a set of internal factors such as the bank's capital, costs, liquidity, asset quality, size and diversification, and external factors such as GDP, inflation, unemployment and market concentration in the performance of Portuguese banks, using a panel data model with fixed effects for a representative sample of Portuguese banks. Findings: The results showed that the variables with the highest explanatory power on the ROA, in terms of internal determinants were operational costs and liquidity and in terms of external determinants, were GDP and Inflation. For the ROE, the variables with greater significance were the capital, operating costs and liquidity. The variables GDP and Inflation suggested weak significance. Practical Implications: Our results showed that macroeconomic variables such as product growth, inflation and unemployment rate influence the performance of banks, and therefore it is important to monitor these economic indicators in order to incorporate them in the decision-making process. The results obtained for the internal variables, under the control of bank managers, show that liquidity and operating costs are relevant for performance. Originality/Value: The value of this article is that it provides empirical evidence on the determinants of bank performance in the Portuguese banking sector, thus adding to international evidence of country studies. |
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Determinants of bank performance in the context of crisis: A panel data analysis for PortugalBank PerformanceInternal VariableMacroeconomics FactorsPanel DataPurpose: This research aims to study the determinants of the performance of the Portuguese banking sector, in the period between 2005 and 2011, characterized by economic downturn and by the bailout of Portuguese economy. Design/Methodology/Approach: Bank performance is measured through Return on Assets (ROA) and Return on Equity (ROE), following the studies that relies on financial statements. We test the impact of a set of internal factors such as the bank's capital, costs, liquidity, asset quality, size and diversification, and external factors such as GDP, inflation, unemployment and market concentration in the performance of Portuguese banks, using a panel data model with fixed effects for a representative sample of Portuguese banks. Findings: The results showed that the variables with the highest explanatory power on the ROA, in terms of internal determinants were operational costs and liquidity and in terms of external determinants, were GDP and Inflation. For the ROE, the variables with greater significance were the capital, operating costs and liquidity. The variables GDP and Inflation suggested weak significance. Practical Implications: Our results showed that macroeconomic variables such as product growth, inflation and unemployment rate influence the performance of banks, and therefore it is important to monitor these economic indicators in order to incorporate them in the decision-making process. The results obtained for the internal variables, under the control of bank managers, show that liquidity and operating costs are relevant for performance. Originality/Value: The value of this article is that it provides empirical evidence on the determinants of bank performance in the Portuguese banking sector, thus adding to international evidence of country studies.€RSJ - European Research Studies JournalRepositório da Universidade de LisboaBorges, Maria RosaTavares, Ana Sofia2022-11-29T20:35:01Z20202020-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/26313engBorges, Maria Rosa and Ana Sofia Tavares .(2020). “Determinants of bank performance in the context of crisis: A panel data analysis for Portugal”. European Research Studies Journal, Volume XXIII, Issue 4: pp. 674-6861108-2976info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:55:47Zoai:www.repository.utl.pt:10400.5/26313Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:09:59.249849Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal |
title |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal |
spellingShingle |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal Borges, Maria Rosa Bank Performance Internal Variable Macroeconomics Factors Panel Data |
title_short |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal |
title_full |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal |
title_fullStr |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal |
title_full_unstemmed |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal |
title_sort |
Determinants of bank performance in the context of crisis: A panel data analysis for Portugal |
author |
Borges, Maria Rosa |
author_facet |
Borges, Maria Rosa Tavares, Ana Sofia |
author_role |
author |
author2 |
Tavares, Ana Sofia |
author2_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Borges, Maria Rosa Tavares, Ana Sofia |
dc.subject.por.fl_str_mv |
Bank Performance Internal Variable Macroeconomics Factors Panel Data |
topic |
Bank Performance Internal Variable Macroeconomics Factors Panel Data |
description |
Purpose: This research aims to study the determinants of the performance of the Portuguese banking sector, in the period between 2005 and 2011, characterized by economic downturn and by the bailout of Portuguese economy. Design/Methodology/Approach: Bank performance is measured through Return on Assets (ROA) and Return on Equity (ROE), following the studies that relies on financial statements. We test the impact of a set of internal factors such as the bank's capital, costs, liquidity, asset quality, size and diversification, and external factors such as GDP, inflation, unemployment and market concentration in the performance of Portuguese banks, using a panel data model with fixed effects for a representative sample of Portuguese banks. Findings: The results showed that the variables with the highest explanatory power on the ROA, in terms of internal determinants were operational costs and liquidity and in terms of external determinants, were GDP and Inflation. For the ROE, the variables with greater significance were the capital, operating costs and liquidity. The variables GDP and Inflation suggested weak significance. Practical Implications: Our results showed that macroeconomic variables such as product growth, inflation and unemployment rate influence the performance of banks, and therefore it is important to monitor these economic indicators in order to incorporate them in the decision-making process. The results obtained for the internal variables, under the control of bank managers, show that liquidity and operating costs are relevant for performance. Originality/Value: The value of this article is that it provides empirical evidence on the determinants of bank performance in the Portuguese banking sector, thus adding to international evidence of country studies. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020 2020-01-01T00:00:00Z 2022-11-29T20:35:01Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/26313 |
url |
http://hdl.handle.net/10400.5/26313 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Borges, Maria Rosa and Ana Sofia Tavares .(2020). “Determinants of bank performance in the context of crisis: A panel data analysis for Portugal”. European Research Studies Journal, Volume XXIII, Issue 4: pp. 674-686 1108-2976 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
€RSJ - European Research Studies Journal |
publisher.none.fl_str_mv |
€RSJ - European Research Studies Journal |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
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1799131196128493568 |