Session 123

Banks and their Influence

Track A

Date: Saturday, March 12, 2011

 

Time: 10:45 – 12:00

Paper

Room: Room 1-E


Session Chair:

  • Robert Grosse, Monterrey Tec

Title: Environment, Strategies, Resources and Internationalization Degree: The Brazilian Banks Case

Authors

  • Jose Geleilate, Florida International University
  • Sergio Forte, University of Fortaleza
  • Michelle Sobreira, University of Fortaleza

Abstract: The Brazilian banks privileged position before the subprime crisis and the robustness of the Brazilian market and banking industry have created new and important opportunities of growth in foreign markets. In this context, this research seeks to assess the main internationalization strategies and resources of Brazilian banks also measuring its performance. Aside from secondary data, were interviewed managers and directors of four organizing/defenders institutions of the Brazilian banking system, and also the three banks already internationalized, about their internationalization’s Environment, Strategies, Resources and Performance in this post crisis scenario and its perspectives. Through content analysis and calculating the internationalization degree of Sullivan (1994) was possible characterize and classify accordingly to theoretical paradigms the bank’s internationalization process of this actual important emerging country.

Title: Leviathan as a Minority Shareholder: BNDES’ Equity Purchases and Firm Performance in Brazil, 1995-2003

Authors

  • Sergio Lazzarini, Insper
  • Aldo Musacchio, Brandeis University

Abstract: There is growing interest on how governments shape business strategy and influence firm performance. Using a database with almost 300 firms traded in the São Paulo stock exchange between 1995 and 2003, we find that having BNDES (the state-owned Brazilian Development Bank) as a minority owner increases firms’ return on assets. This result is possibly due to the reduction in capital constraints provided by BNDES’ long-term equity. However, we find that the effect of BNDES’ equity is reduced when it is associated with state-owned and private-domestic pyramidal groups. Thus, our results suggest that minority stakes by a development bank can have a positive effect on performance as long as they promote long-term investments and are shielded from governmental interference and potential minority shareholder expropriation.

Title: Ratings and Mission Drift for Microfinance Firms in Latin America

Authors

  • Warren Boeker, University of Washington

Abstract: This study examines how microfinance institutions in Latin America are evaluated and rated by outside agencies and how those ratings affect the social programs they offer. We examine three aspects of this process: 1) How does evaluation affect the mission of the microfinance institution? In the absence of well established and accepted social performance indicators will MFIs shift their focus to financial indicators? 2) How will a focus on financial indicators play out in terms of the programs offered by the MFI? Do the financial measures tend to crowd out the social ones? 3) What is the role of donors – first as the recipients of these MFI ratings and also as decision makers using the evaluations of the ratings agencies to make resource allocation decisions?

All Sessions in Track A...

Fri: 11:30 – 12:45
Session 103: CSR and Environmental Issues in Emerging Markets
Session 111: Performance Issues
Session 114: Internationalization Strategies
Session 117: Learning in Emerging Markets
Session 120: The Characteristics and Effects of the BRIC Economies as Hubs for Regional Economic Development
Fri: 14:15 – 15:30
Session 102: Resources in Emerging Markets
Session 106: Multilatina FDI Strategies
Session 110: Global Competition
Session 112: CSR and Environmental Issues
Session 124: Research Methods for the Study of Competitive Advantage
Fri: 15:30 – 16:45
Session 101: Institutions in Emerging Markets
Session 104: Alliances and Networks
Session 105: Knowledge and Innovation
Session 108: Knowledge and Resources
Session 115: Developing Country Firms
Sat: 10:45 – 12:00
Session 107: Multilatina Performance
Session 113: CEOs and Other Human Resources
Session 123: Banks and their Influence
Session 125: Reviewing Latin America’s Strategic Role in Global Development
Session 126: Publishing and Not Perishing: Strategies for Publishing in Top Journals
Sat: 15:45 – 17:00
Session 100: Entrepreneurship in Emerging Markets
Session 109: Social Issues and Local Development
Session 116: Emerging Market Institutional Reform
Session 118: Management Innovation in Emerging Markets
Session 127: Teaching in Latin America


Strategic Management Society

Rio De Janeiro