Should I stay or should I go? Bank productivity and internationalization decisions
نویسندگان
چکیده
Differences in firm-level productivity explain international activities of non-financial firms quite well. We test whether differences in bank productivity determine international activities of banks. Based on a dataset that allows tracking banks across countries and across different modes of foreign entry, we model the ordered probability of maintaining a commercial presence abroad and the volume of banks’ international assets empirically. Our research has three main findings. First, more productive banks are more likely to enter foreign markets in increasingly complex modes. Second, more productive banks also hold larger volumes of foreign assets. Third, higher risk aversion renders entry less likely, but it increases the volume of foreign activities conditional upon entry. DOI: https://doi.org/10.1016/j.jbankfin.2014.02.003 Posted at the Zurich Open Repository and Archive, University of Zurich ZORA URL: https://doi.org/10.5167/uzh-100552 Accepted Version Originally published at: Buch, Claudia M; Koch, Cathérine T; Koetter, Michael (2014). Should I stay or should I go? Bank productivity and internationalization decisions. Journal of Banking and Finance, 42:266-282. DOI: https://doi.org/10.1016/j.jbankfin.2014.02.003 Should I stay or should I go? Bank productivity and internationalization decisions Claudia M. Buch a,b, Cathérine T. Koch c, and Michael Koetter d,∗ aHalle Institute for Economic Research, Kleine Maerkerstrasse 8, 06108 Halle (Saale), Germany bOtto von Guericke University Magdeburg, Economics Department, Universitaetsplatz 2, 39106 Magdeburg, Germany cUniversity of Zurich, Department of Economics, Zurichbergstrasse 14, 8032 Zurich, Switzerland dFrankfurt School of Finance and Management, Sonnemannstr. 9-11, 60314 Frankfurt a.M., Germany This version: 10 February 2014
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