A study on the impact of elections and ownership on the performance of commercial banks in the Philippines
Date of Publication
2009
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Commerce Major in Management of Financial Institutions
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Ruben Carlo O. Asuncion
Defense Panel Chair
Rolando D Esguerra
Defense Panel Member
Robert Dan Roces
John Paolo Rivera
Abstract/Summary
Over the years, the Philippine electroral system has faced a lot of issues with cheating, icluding vote buying, padding voters' lists, and the infamous dagdag-bawas. Considering the importance of elections and the issues related to such event, knowing the effects of elections on bank performance can be useful to many.
This research studied the effects of not only the lections, but also of the type of ownership structure on the performance of commercial banks in the Philippines. Secondary data was gathered from the financial statements found in the Securities and Exchange Commission, Bangko Sentral ng Pilipinas, the Philippine Stock Exchange, and the main branches of banks whose financial statements were not available in the aforementioned.
The results of the regression showed that ownership structure indeed affects bank performance as measured by return on assets (ROA), net interest margin (NIM) and overhead cost (cost). Results showed, althuogh insignificant, that public banks tend to be negatively correlated with NIM, and negatively correlated with ROA, positively correlated with NIM, and negatively correlated with COST. On the other hand, foreign banks tend to be significant and negatively correlated with COST, negatively correlated with ROA, and positively correlated with NIM. The proponents found no significant difference during election and non-election periods in the ROA and COST of public and foreign banks. The impact of elections and ownership can be seen in the NIM criterion of a bank's performance. This change, however, cannot be attributed to the use of loans for campaigns, but to the low demand for loans then resulting in lower interest rates.
Abstract Format
html
Language
English
Format
Accession Number
TU21858
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
42, [11] leaves : illustrations
Keywords
Banks and banking--Philippines
Recommended Citation
Bradd, K. A., Cervas, R. G., & Llamado, J. P. (2009). A study on the impact of elections and ownership on the performance of commercial banks in the Philippines. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18441