Country Creditor Rights, Information Sharing, and Commercial Banks’ Profitability
Amor-Tapia, Borja; Fanjul, José L.; Tascón, María T.
Year: 2010 Volume: 60 Issue: 4 Pages: 336-354
Abstract: We analyze commercial banks’ profitability (return on equity, ROE) at different levels of creditor rights and an aggregate score of information sharing in terms of credit bureaus. After controlling for bank size and some macroeconomic variables, the results indicate that profitability is higher and more persistent when creditors are well protected. Furthermore, the presence of a (public or private) credit bureau increases the persistence of ROE, but higher levels of information sharing foster competition and erode future profitability.
JEL classification: G21, G28, M4, D4
Keywords: return on equity (ROE), commercial banks, creditor rights, information sharing, predictive ability of accounting
RePEc: http://ideas.repec.org/a/fau/fauart/v60y2010i4p336-354.html
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