Cost structures in multinational and domestic banking

Mahajan, Arvind; Rangan, Nanda; Zardkoohi, Asghar

doi:10.1016/0378-4266(94)00129-4

Cited by 114 publications

(53 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In general, TEC results indicate that foreign-invested banks are relatively more efficient (higher postive TEC) than their domestic counterparts consistent with the findings of Hasan & Hunter (1996), Mahajan et al (1996), DeYoung & Nolle (1996) and Chang et al (1998). Another comment was suggested by Havrylchyk (2006), who emphasize that foreign banks acquire more efficient banks in a banking industry, whilst fail to enhance their efficiency further.…”

Section: Dea-malmquist Findings: Bank Level Analysissupporting

confidence: 85%

Towards the European Union - Impact of FDI and Technological Change on Turkish Banking

Olgu¹

2012

Technological Change

View full text Add to dashboard Cite

Section: Dea-malmquist Findings: Bank Level Analysissupporting

confidence: 85%

Towards the European Union - Impact of FDI and Technological Change on Turkish Banking

Olgu¹

2012

Technological Change

View full text Add to dashboard Cite

“…Benefits of geographical diversification include: better access to capital markets in other regions/countries, which potentially leads to reduced cost of capital (see Deng and Elyasiani (2007)), greater market power (see Iskandar-Datta and McLaughlin (2005)), and reduced tax liabilities as geographically diversified banks can transfer resources from high tax areas to low tax areas. Consistent with these arguments, Mahajan et al (1996), based on U.S. multinational and domestic banks from [1987][1988][1989][1990], conclude that multinational banks were able to fully exploit economies of scale, and had lower inefficiencies than domestic banks.…”

Section: Literature Reviewmentioning

confidence: 90%

The effects of focus versus diversification on bank performance: Evidence from Chinese banks

Berger

Hasan

Zhou

2010

Journal of Banking & Finance

411

199

View full text Add to dashboard Cite

This paper investigates the effects of focus versus diversification on bank performance using data on Chinese banks during the 1996-2006 period. We construct a new measure, economies of diversification, and compare the results to those of the more conventional focus index, which is based on the sum of squares of shares in different products or regions. Diversification is captured in four dimensions: loans, deposits, assets, and geography. We find that all four dimensions of diversification are associated with reduced profits and higher costs. These results are robust regardless of alternative measures of diversification and performance. Furthermore, we observe that banks with foreign ownership (both majority and minority ownership) and banks with conglomerate affiliation -are associated with fewer diseconomies of diversification, suggesting that foreign ownership and conglomerate affiliation play an important mitigating role. This analysis may provide important implications for bank managers and regulators in China as well as in other emerging economies.

show abstract

“…Other studies in this category established that foreign-owned banks are relatively less efficient as domestic-owned owned banks (cf. Hasan and Hunter, 1996;Mahajan et al, 1996;DeYoung and Nolle, 1996;Chang et al, 1998;Peek et al, 1999).…”

Section: Literaturementioning

confidence: 99%