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Determinants Of Emerging Markets’ Commercial Bank Stock Returns

Author

Listed:
  • Eric Girard
  • James Nolan
  • Tony Pondillo

Abstract

Although banks are central to the economic development and growth of emerging markets (Benston, 2004), most studies have not investigated the determinants of stock returns of this sector in these countries. This study, contributes to the literature in finance by investigating and identifying factors that investors should be concerned about while deciding about their investments in commercial banks in emerging markets. Our results indicate that apart from fundamental risk factors like size and price to book, duration gap, bank concentration, corruption, debt servicing socio-economic conditions, and percapita GDP also influence returns of commercial banks in emerging markets.

Suggested Citation

  • Eric Girard & James Nolan & Tony Pondillo, 2010. "Determinants Of Emerging Markets’ Commercial Bank Stock Returns," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(2), pages 11-26.
    • Handle: RePEc:ibf:gjbres:v:4:y:2010:i:2:p:11-26
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    References listed on IDEAS

    as
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    Cited by:

    1. Sabyasachi Mohapatra & Arun Kumar Misra & Marimuthu Murali Kannan, 2020. "Risk factors explaining returns anomaly in emerging market banks – study on Indian banking system," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 44(3), pages 417-433, July.
    2. Nsiah K. Acheampong, 2013. "The Effects of Foreign Bank Entry on Financial Performance of Domestic-Owned Banks in Ghana," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(3), pages 93-104.

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    More about this item

    Keywords

    multifactor models; commercial banks; emerging markets;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G1 - Financial Economics - - General Financial Markets
    • N2 - Economic History - - Financial Markets and Institutions

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