Internationalization and Bank Risk

References

• Agarwal S, Lucca D, Seru A, Trebbi F (2014) Inconsistent regulators: Evidence from banking. Quart. J. Econom. 129:889–938.Crossref, Google Scholar
• Agmon T, Lessard D (1977) Investor recognition of corporate international diversification. J. Finance 32:1049–1055.Crossref, Google Scholar
• Alibux A (2007) Cross-border mergers and acquisitions in the European banking sector. Dissertation, Erasmus University, Rotterdam, Netherlands.Google Scholar
• Allen F, Carletti E, Marquez R (2011) Credit market competition and capital regulation. Rev. Financial Stud. 24:983–1018.Crossref, Google Scholar
• Altman E (1968) Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. J. Finance 23:589–609.Crossref, Google Scholar
• Amihud Y, Lev B (1981) Risk reduction as a managerial motive for conglomerate mergers. Bell J. Econom. 12:605–617.Crossref, Google Scholar
• Amihud Y, DeLong G, Saunders A (2002) The effects of cross-border bank mergers on bank risk and value. J. Internat. Money Finance 21:857–877.Crossref, Google Scholar
• Baele L, De Jonghe O, Vander Vennet R (2007) Does the stock market value bank diversification? J. Banking Finance 31:1999–2023.Crossref, Google Scholar
• Barry T, Lepetit L, Tarazi A (2011) Ownership structure and risk in publicly held and privately owned banks. J. Banking Finance 35:1327–1340.Crossref, Google Scholar
• Bartov E, Bodnar G, Kaul A (1996) Exchange rate variability and the riskiness of US multinational firms: Evidence from the breakdown of Bretton Woods. J. Financial Econom. 42:105–132.Crossref, Google Scholar
• Beltratti A, Stulz R (2012) The credit crisis around the globe: Why did some banks perform better? J. Financial Econom. 105:1–17.Crossref, Google Scholar
• Bennett J, Sias R, Starks L (2003) Greener pastures and the impact of dynamic institutional preferences. Rev. Financial Stud. 16:1203–1238.Crossref, Google Scholar
• Berger A, Bouwman C (2009) Bank liquidity creation. Rev. Financial Stud. 22:3779–3837.Crossref, Google Scholar
• Berger A, Bouwman C (2013) How does capital affect bank performance during financial crises? J. Financial Econom. 109:146–176.Crossref, Google Scholar
• Berger A, Klapper L, Turk-Ariss R (2009) Bank competition and financial stability. J. Financial Services Res. 35:99–118.Crossref, Google Scholar
• Berger A, DeYoung R, Genay H, Udell G (2000) The globalization of financial institutions: Evidence from cross-border banking performance. Brookings-Wharton Papers on Financial Services 3:23–158.Crossref, Google Scholar
• Bertay A, Demirgüç-Kunt A, Huizinga H (2015) Is the financial safety net a barrier to cross-border banking? Working paper, World Bank, Washington, DC.Google Scholar
• Bhagat S, Bolton B, Lu J (2012) Size, leverage, and risk-taking of financial institutions. Working paper, University of Colorado, Boulder.Google Scholar
• Black F (1990) Equilibrium exchange rate hedging. J. Finance 45:899–907.Crossref, Google Scholar
• Black L, Hazelwood L (2013) The effect of TARP on bank risk-taking. J. Financial Stability 9:790–803.Crossref, Google Scholar
• Boyd J, De Nicolo G (2005) The theory of bank risk taking and competition revisited. J. Finance 60:1329–1343.Crossref, Google Scholar
• Boyd J, Runkle D (1993) Size and performance of banking firms. J. Monetary Econom. 31:47–67.Crossref, Google Scholar
• Brealey R, Kaplanis E (1996) The determination of foreign banking location. J. Internat. Money Finance 15:577–597.Crossref, Google Scholar
• Brewer T, Rivoli P (1990) Politics and perceived country creditworthiness in international banking. J. Money, Credit Banking 22:357–369.Crossref, Google Scholar
• Brickley J, Coles L, Jarrell J (1997) Leadership structure: Separating the CEO and chairman of the board. J. Corporate Finance 3:189–220.Crossref, Google Scholar
• Brimmer A, Dahl F (1975) Growth of American international banking: Implications for public policy. J. Finance 30:341–363.Crossref, Google Scholar
• Buch C, DeLong G (2004) Cross-border bank mergers: What lures the rare animal? J. Banking Finance 28:2077–2102.Crossref, Google Scholar
• Buch C, Koch C, Koetter M (2013) Do banks benefit from internationalization? Revisiting the market power-risk nexus. Rev. Finance 17:1401–1435.Crossref, Google Scholar
• Burgman T (1996) An empirical examination of multinational capital structure. J. Internat. Bus. Stud. 27:553–570.Crossref, Google Scholar
• Cetorelli N, Goldberg L (2011) Global banks and international shock transmission: Evidence from the crisis. IMF Econom. Rev. 59:41–76.Crossref, Google Scholar
• Cetorelli N, Goldberg L (2012) Banking globalization and monetary transmission. J. Finance 67:1811–1843.Crossref, Google Scholar
• Chari A, Gupta N (2008) Incumbents and protectionism: The political economy of foreign entry liberalization. J. Financial Econom. 88:633–656.Crossref, Google Scholar
• Chen X, Harford J, Li K (2007) Monitoring: Which institutions matter? J. Financial Econom. 86:279–305.Crossref, Google Scholar
• Cuervo-Cazurra A, Maloney M, Manrakhan S (2007) Causes of the difficulties in internationalization. J. Internat. Bus. Stud. 5:709–725.Crossref, Google Scholar
• De Haan J, Poghosyan T (2012) Bank size, market concentration, and bank earnings volatility in the US. J. Internat. Financial Markets, Institutions Money 22:35–54.Crossref, Google Scholar
• Dehejia R, Wahba S (2002) Propensity score-matching methods for non-experimental causal studies. Rev. Econom. Statist. 84:151–161.Crossref, Google Scholar
• DeLong G (2001) Stockholder gains from focusing versus diversifying bank mergers. J. Financial Econom. 59:221–252.Crossref, Google Scholar
• Demirgüç-Kunt A, Huizinga H (2010) Bank activity and funding strategies: The impact on risk and returns. J. Financial Econom. 98:626–650.Crossref, Google Scholar
• Demsetz R, Strahan E (1997) Diversification, size, and risk at bank holding companies. J. Money, Credit, Banking 29:300–313.Crossref, Google Scholar
• DeYoung R, Nolle D (1996) Foreign-owned banks in the U.S.: Earning market share or buying it? J. Money, Credit Banking 28:622–636.Crossref, Google Scholar
• Diamond D (1984) Financial intermediation and delegated monitoring. Rev. Econom. Stud. 51:393–414.Crossref, Google Scholar
• Dittmar A, Mahrt-Smith J (2007) Corporate governance and the value of cash holdings. J. Financial Econom. 83:599–634.Crossref, Google Scholar
• Duchin R, Sosyura D (2014) Safer ratios, riskier portfolios: Banks’ response to government aid. J. Financial Econom. 113:1–28.Crossref, Google Scholar
• Duchin R, Ozbas O, Sensoy B (2010) Costly external finance, corporate investment, and the subprime mortgage credit crisis. J. Financial Econom. 97:418–435.Crossref, Google Scholar
• Engwall L, Wallenstål M (1988) Tit for tat in small steps: The internationalization of Swedish banks. Scandinavian J. Management 4:147–155.Crossref, Google Scholar
• Esty B (1998) The impact of contingent liability on commercial bank risk taking. J. Financial Econom. 47:189–218.Crossref, Google Scholar
• Eun C, Resnick B (1988) Exchange rate uncertainty, forward contracts, and international portfolio selection. J. Finance 43:197–215.Crossref, Google Scholar
• Fama E, French K (1993) Common risk factors in the returns on stocks and bonds. J. Financial Econom. 33:3–57.Crossref, Google Scholar
• Galema R, Koetter M, Liesegang C (2016) Lend global, fund local? Price and cost margins in multinational banking. Rev. Finance. 20:1981–2014.Crossref, Google Scholar
• Gaspar J, Massa M, Matos P (2005) Shareholder investment horizons and the market for corporate control. J. Financial Econom. 76:135–165.Crossref, Google Scholar
• Gennaioli N, Shleifer A, Vishny R (2012) Neglected risks, financial innovation, and financial fragility. J. Financial Econom. 104:452–468.Crossref, Google Scholar
• Gillan S, Starks L (2000) Corporate governance proposals and shareholder activism: The role of institutional investors. J. Financial Econom. 57:275–305.Crossref, Google Scholar
• Gleason K, Mathur I, Wiggins III R (2006) The use of acquisitions and joint ventures by U.S. banks expanding abroad. J. Financial Res. 29:503–522.Crossref, Google Scholar
• Goetz M, Laeven L, Levine R (2013) Identifying the valuation effects and agency costs of corporate diversification: Evidence from the geographic diversification of U.S. banks. Rev. Financial Stud. 26:1787–1823.Crossref, Google Scholar
• Goetz M, Laeven L, Levine R (2016) Does the geographic expansion of banks reduce risk? J. Financial Econom. 120:346–362.Crossref, Google Scholar
• Goldberg L, Saunders A (1981) The determinants of foreign banking activity in the United States. J. Banking Finance 5:17–32.Crossref, Google Scholar
• Grosse R, Goldberg L (1991) Foreign bank activity in the United States: An analysis by country of origin. J. Banking Finance 15:1093–1112.Crossref, Google Scholar
• Hakenes H, Schnabel I (2011) Bank size and risk taking under Basel II. J. Banking Finance 35:1436–1449.Crossref, Google Scholar
• Hellman P (1996) The internationalization of Finnish financial service companies. Internat. Bus. Rev. 5:191–208.Crossref, Google Scholar
• Holmstrom B, Tirole J (1997) Financial intermediation, loanable funds, and the real sector. Quart. J. Econom. 112:663–691.Crossref, Google Scholar
• Houston J, Lin C, Ma Y (2012) Regulatory arbitrage and international bank flows. J. Finance 67:1845–1895.Crossref, Google Scholar
• Houston J, Lin C, Lin P, Ma Y (2010) Creditor rights, information sharing, and bank risk taking. J. Financial Econom. 96:485–512.Crossref, Google Scholar
• Hughes L, Logue D, Sweeney R (1975) Corporate international diversification and market assigned measures of risk and diversification. J. Financial Quant. Anal. 10:627–637.Crossref, Google Scholar
• International Monetary Fund (2012) Global financial stability report. Accessed April 11, 2013, http://www.imf.org/external/pubs/ft/gfsr/2012/02/pdf/text.pdf.Google Scholar
• Jensen M (1986) Agency costs of free cash flow, corporate finance, and takeovers. Amer. Econom. Rev. 76:323–329.Google Scholar
• Jensen M (1993) The modern industrial revolution, exit and the failure of internal control systems. J. Finance 48:831–880.Crossref, Google Scholar
• Jensen M, Meckling W (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. 3:305–460.Crossref, Google Scholar
• Keeley M (1990) Deposit insurance, risk, and market power in banking. Amer. Econom. Rev. 80:1183–1200.Google Scholar
• Kim D, Santomero A (1988) Risk in banking and capital regulation. J. Finance 43:1219–1233.Crossref, Google Scholar
• Koehn M, Santomero A (1980) Regulation of bank capital and portfolio risk. J. Finance 35:1235–1244.Crossref, Google Scholar
• Kwok C, Reeb D (2000) Internationalization and firm risk: An upstream-downstream hypothesis. J. Internat. Bus. Stud. 31:611–629.Crossref, Google Scholar
• Laeven L, Levine R (2007) Is there a diversification discount in financial conglomerates? J. Financial Econom. 85:331–367.Crossref, Google Scholar
• Laeven L, Levine R (2009) Bank governance, regulation and risk taking. J. Financial Econom. 93:259–275.Crossref, Google Scholar
• Lang M, Lins K, Miller D (2004) Concentrated control, analyst following, and valuation: Do analysts matter most when investors are protected least? J. Accounting Res. 42:589–623.Crossref, Google Scholar
• Lawrence A, Minutti-Meza M, Zhang P (2011) Can Big 4 versus non-Big 4 differences in audit-quality proxies be attributed to client characteristics? Accounting Rev. 86:259–286.Crossref, Google Scholar
• Lee K, Kwok C (1988) Multinational corporations vs. domestic corporations: International environmental factors and determinants of capital structure. J. Internat. Bus. Stud. 19:195–217.Crossref, Google Scholar
• LePetit L, Nys E, Rous P, Tarazi A (2008) Bank income structure and risk: An empirical analysis of European banks. J. Banking Finance 32:1452–1467.Crossref, Google Scholar
• Levitt S (1996) The effect of prison population size on crime rates: Evidence from prison overcrowding litigation. Quart. J. Econom. 111:319–351.Crossref, Google Scholar
• Li J, Guisinger S (1992) The globalization of service multinationals in the “triad” regions: Japan, Western Europe and North America. J. Internat. Bus. Stud. 23:675–696.Crossref, Google Scholar
• Mahajan A (1990) Pricing risk of expropriation. Financial Management 19:77–86.Crossref, Google Scholar
• Martinez-Miera D, Repullo R (2010) Does competition reduce the risk of bank failure? Rev. Financial Stud. 23:3638–3664.Crossref, Google Scholar
• McConnell J, Servaes H (1990) Additional evidence on equity ownership and corporate values. J. Financial Econom. 27:595–612.Crossref, Google Scholar
• Mehran H, Thakor A (2011) Bank capital and value in the cross-section. Rev. Financial Stud. 24:1019–1067.Crossref, Google Scholar
• Merton R (1974) On the pricing of corporate debt: The risk structure of interest rates. J. Finance 29:449–470.Google Scholar
• Michel A, Shaked I (1986) Multinational corporations versus domestic corporations: Financial performance and characteristics. J. Internat. Bus. Stud. 17:89–100.Crossref, Google Scholar
• Miller S, Parkhe A (1998) Patterns in the expansion of U.S. banks’ foreign operations. J. Internat. Bus. Stud. 29:359–390.Crossref, Google Scholar
• Minh To H, Tripe D (2002) Factors influencing the performance of foreign-owned banks in New Zealand. J. Internat. Financial Markets, Institutions Money 12:341–357.Crossref, Google Scholar
• Nichols D, Wahlen J, Wieland M (2009) Publicly traded versus privately held: Implications for conditional conservatism in bank accounting. Rev. Accounting Stud. 14:88–122.Crossref, Google Scholar
• O’Hara M, Shaw W (1990) Deposit insurance and wealth effects: The value of being “too big to fail”. J. Finance 45:1587–1600.Google Scholar
• Ongena S, Popov A, Udell G (2013) “When the cat’s away the mice will play”: Does regulation at home affect bank risk-taking abroad? J. Financial Econom. 108:727–750.Crossref, Google Scholar
• Peek J, Rosengren E, Kasirye F (1999) The poor performance of foreign bank subsidiaries: Were the problems acquired or created? J. Banking Finance 23:579–604.Crossref, Google Scholar
• Reeb D, Kwok C, Baek H (1998) Systematic risk of the multinational corporation. J. Internat. Bus. Stud. 29:263–279.Crossref, Google Scholar
• Roll R (1986) The hubris hypothesis of corporate takeovers. J. Bus. 59:197–216.Crossref, Google Scholar
• Rosenbaum P, Rubin D (1983) The central role of the propensity score in observational studies for causal effects. Biometrika 70:41–55.Crossref, Google Scholar
• Rugman A (1976) Risk reduction by international diversification. J. Internat. Bus. Stud. 7:75–80.Crossref, Google Scholar
• Saunders A, Strock E, Travlos N (1990) Ownership structure, deregulation, and bank risk taking. J. Finance 45:643–654.Crossref, Google Scholar
• Seth R, Nolle D, Mohanty S (1998) Do banks follow their customers abroad? Financial Markets, Institutions, Instruments 7:1–25.Crossref, Google Scholar
• Shapiro A (1985) Currency risk and country risk in international banking. J. Finance 40:881–891.Crossref, Google Scholar
• Solnik B (1974) An equilibrium model of the international capital market. J. Econom. Theory 8:500–525.Crossref, Google Scholar
• Stiroh K (2006) A portfolio view of banking with interest and noninterest activities. J. Money, Credit Banking 38:1351–1361.Crossref, Google Scholar
• Stiroh K, Rumble A (2006) The dark side of diversification: The case of US financial holding companies. J. Banking Finance 30:2131–2161.Crossref, Google Scholar
• Stulz R (1988) Managerial control of voting rights: Financing policies and the market for corporate control. J. Financial Econom. 20:25–54.Crossref, Google Scholar
• Stulz R (1990) Managerial discretion and optimal financial policies. J. Financial Econom. 26:3–27.Crossref, Google Scholar
• Wagner W (2011) Systemic liquidation risk and the diversity-diversification trade-off. J. Finance 66:1141–1175.Crossref, Google Scholar
• Winton A (2000) Don’t put all your eggs in one basket? Diversification and specialization in lending. Working paper, University of Minnesota, Twin Cities.Google Scholar