The effects of ownership on bank efficiency in Latin America
Authors: Figueira, Catarina; Nellis, Joseph; Parker, David
Source: Applied Economics, Volume 41, Number 18, August 2009 , pp. 2353-2368(16)
Abstract:In recent years many countries have privatised their state-owned banks and encouraged foreign investment. This article investigates the roles of state and private ownership and foreign and domestic ownership on the performance of banks across Latin America. Using a range of financial and economic ratios, data envelopment analysis (DEA) and regression modelling, the study reveals that by 2001 there was surprisingly little difference in performance between state-owned and privately-owned banks and between foreign and domestically-owned banks. The study also reports significantly different levels of bank performance in different Latin American countries, suggesting that country differences outweighed ownership differences in explaining performance.
Document Type: Research Article
Affiliations: School of Management, Cranfield University, Cranfield, Bedfordshire MK430AL, United Kingdom
Publication date: August 1, 2009