THE INFLUENCE OF MACROECONOMICS ON ROE: AN ANALYSIS IN LATIN AMERICAN FINANCE AND INSURANCE COMPANIES

Gabriela Moreira de Souza, Allison Manoel de Sousa, Rodrigo Malta Meurer, Rafael Martins Noriller, Josimar Pires da Silva, Maria Aparecida Farias de Souza Nogueira, Katia Katsumi Arakaki

Resumo


This research aimed to analyze the effect of macroeconomic indicators on the return on equity of Finance and Insurance publicly traded companies in Latin America. The sample was composed of 147 companies from four emerging economies (Argentina, Brazil, Chile and Mexico). The analysis interval refers to annual periods from 2010 to 2017. This information was analyzed through the panel regression model. The results shows that the exchange rate negatively influences the return on equity. On the other hand, the Gross Domestic Product and the interest rate are not related to the profitability of the return on equity. The present study has implications in the literature advancement by demonstrating the influences of the exchange rate on the return on equity in important economies in Latin America.


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