Government ownership of banks: Implications for minority shareholders

Aldy Fariz Achsanta, Laetitia Lepetit and Amine Tarazi
Additional contact information
Laetitia Lepetit: UNILIM - Université de Limoges, LAPE - Laboratoire d'Analyse et de Prospective Economique - GIO - Gouvernance des Institutions et des Organisations - UNILIM - Université de Limoges

Post-Print from HAL

Abstract: We investigate whether private shareholders of banks controlled by the government suffer or benefit from such control. This question has gained in importance, especially since the 2007–2008 global financial crisis and the substantial increase in government involvement in banks. The extant literature on firm ownership provides mixed results, with a focus on non-financial firms exclusively. Using unique data from Indonesia from 2009 to 2014, we examine the stock market reaction to loan announcements made by state-owned banks and private banks. We provide new evidence that, for shareholders of state-owned banks, the outcome is not as detrimental as for shareholders of private banks and can even be beneficial. This is because government bailouts are much more common for state-owned banks.

Date: 2022-07
References: Add references at CitEc
Citations:

Published in Economic Modelling, 2022, 112, pp.105842. ⟨10.1016/j.econmod.2022.105842⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Government ownership of banks: Implications for minority shareholders (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04681691

DOI: 10.1016/j.econmod.2022.105842

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().