Does foreign ownership foster bank performance?

• Autores: Robert Lensink, I. Naaborg
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 17, Nº. 10-12, 2007, págs. 881-885
• Idioma: inglés
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• Resumen

  • We examine the effect of a rise in foreign ownership on banks' interest revenues and profitability using panel data of banks worldwide. We determine the exact yearly foreign ownership for each bank and construct a continuous foreign ownership variable. Estimating with the system generalized methods of moments (GMM) technique we find that a rise in foreign ownership negatively affects bank performance, providing evidence for the home field advantage theory.