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Effects Of Heterogeneous Institutional Investors On The Performance Of Portuguese Banks

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  • PEREIRA Vítor

    (CEFAGE-ISCAL, ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Portugal)

Abstract

Effective corporate governance is fundamental to the correct operation of the banking sector. This study examines corporate governance in terms of the effects of different combinations of institutional investors on the performance of Portuguese banks. Effects based on kind (e.g. type of institutional investor) and degree (e.g. institutional investor experience) are considered. The results of a crisp-set qualitative comparative analysis (csQCA) show that the simultaneous presence of banks and corporations as shareholders, and non-presence of financial companies can positively affect banks’ return on average assets (ROAA) and return on average equity (ROAE). This research provides a wider picture of possible impacts in terms of banks’ performance when there are different types of institutional owners. Lastly, the results are particularly relevant for the supervision protocols developed by the Bank of Portugal and the European Central Bank, in situations of changes of banks’ shareholders.

Suggested Citation

  • PEREIRA Vítor, 2022. "Effects Of Heterogeneous Institutional Investors On The Performance Of Portuguese Banks," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 171-186, April.
    • Handle: RePEc:blg:journl:v:17:y:2022:i:1:p:171-186
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    References listed on IDEAS

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    2. Paniagua, Jordi & Rivelles, Rafael & Sapena, Juan, 2018. "Corporate governance and financial performance: The role of ownership and board structure," Journal of Business Research, Elsevier, vol. 89(C), pages 229-234.
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