<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

Effects of Heterogeneous Institutional Investors on the Performance of Portuguese Banks

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Effective corporate governance is fundamental to the correct operation of the banking sector. This study examines corporate governance in terms of the effects...

Effects of Heterogeneous Institutional Investors on the Performance of Portuguese Banks

Published Online: May 31, 2022

Page range: 171 - 186

DOI: https://doi.org/10.2478/sbe-2022-0012

Keywords
Bank Performance, csQCA, Corporate Governance, Institutional Investors

© 2022 Pereira Vítor, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Effects of Heterogeneous Institutional Investors on the Performance of Portuguese Banks

Published Online: May 31, 2022

Page range: 171 - 186

DOI: https://doi.org/10.2478/sbe-2022-0012

KeywordsBank Performance, csQCA, Corporate Governance, Institutional Investors

© 2022 Pereira Vítor, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Bank Performance, csQCA, Corporate Governance, Institutional Investors