Determinants of the not expected profitability of banking companies that are traded on the bolsa de valores de Lima

Edmundo R. Lizarzaburu, Kurt Burneo Farfan, José A. Guevara Medina

Research output: Contribution to journalArticlepeer-review

Abstract

This research proposes a theoretical framework focused on explaining the unexpected or "abnormal" return of the most representative banks of the Peruvian financial system, which also have shares listed on the Lima Stock Exchange. Likewise, this paper propose a number of explanatory variables such as the ratio of allowance for loan losses (PPP), size of the bank (TAM), asset liquidity (LIQ), leverage ratio (APL), efficiency in the management (EG), fee income (ICM) and general cost ratio (RCG). Thus, an independent linear regression is performed for each bank. Finally, we found that the level of assets is the significant variable in this analysis because it serves as a barrier for new and existing competitors.

Translated title of the contributionDeterminants of the not expected profitability of banking companies that are traded on the bolsa de valores de Lima
Original languageSpanish
Pages (from-to)22
Number of pages1
JournalEspacios
Volume38
Issue number8
StatePublished - 2017
Externally publishedYes

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