Please use this identifier to cite or link to this item:
http://hdl.handle.net/10071/20319
Author(s): | Gulamhussen, M. A. |
Date: | 2007 |
Title: | Choice of scale by banks in financial centers |
Volume: | 16 |
Number: | 4 |
Pages: | 507 - 525 |
ISSN: | 0969-5931 |
DOI (Digital Object Identifier): | 10.1016/j.ibusrev.2007.04.002 |
Keywords: | International investment Financial institutions and services |
Abstract: | The paper develops a theoretical link between foreign investment, scale and reversibility in the banking industry. This link is used to formulate hypotheses that are empirically examined with a unique data set collected through interviews with senior managers of multinational banks in London. Findings reveal that banks do not set up large operations to service domestic customers or get a foothold, but do so to create hubs. Banks with confident beliefs set up large operations, and use large offices to lock themselves into the market. These results explain the cross-sectional variation in the size of foreign investments in the industry. Robustness checks do not reveal presence of influential data points; regressions are stable over time and consistent with what we know from secondary samples. |
Peerreviewed: | yes |
Access type: | Open Access |
Appears in Collections: | BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Choice of scale by banks BfP.pdf | Pós-print | 309,24 kB | Adobe PDF | View/Open |
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.