Country Creditor Rights, Information Sharing, and Commercial Banks’ Profitability

Czech Journal of Economics and Finance (Finance a uver), Vol. 60, No. 4, pp. 336-354, November 2010

Posted: 19 Dec 2010

See all articles by Borja Amor-Tapia

Borja Amor-Tapia

Universidad de León

Maria T. Tascón

Universidad de León

José L. Fanjul

Universidad de León

Date Written: December, 17 2010

Abstract

The authors 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.

Keywords: return on equity (ROE), commercial banks, creditor rights, information sharing, predictive ability of accounting

JEL Classification: G21, G28, M4, D4

Suggested Citation

Amor-Tapia, Borja and Tascon, Maria Teresa and Fanjul, José L., Country Creditor Rights, Information Sharing, and Commercial Banks’ Profitability (December, 17 2010). Czech Journal of Economics and Finance (Finance a uver), Vol. 60, No. 4, pp. 336-354, November 2010, Available at SSRN: https://ssrn.com/abstract=1727275

Borja Amor-Tapia (Contact Author)

Universidad de León ( email )

Leon, 24071
Spain
(+34) 987291000 (Phone)

Maria Teresa Tascon

Universidad de León ( email )

Leon, 24071
Spain

José L. Fanjul

Universidad de León ( email )

Leon, 24071
Spain

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