Internationalization and Operational Performance:An Empirical Analysis of Taiwan’s Subsidiary Banks in Financial Holding Companies

• Main Authors: Ya-Wei Chiang, 江雅微
• Other Authors: Chen-Jui Huang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/a5hnm2

碩士 === 東海大學 === 財務金融學系碩士在職專班 === 102 === This study attempts to analyze the impact of internationalization on operational performance for the banking industry in Taiwan. The sample covers 14 subsidiary banks in financial holding companies from 2008 to 2012. The empirical analysis adopts the fixed-effect regression model for panel data. Internationalization is measured by the ratios of overseas assets, revenue, branches, and geographic distribution (Asia Pacific versus US-Europe) respectively. Major findings are as follows. A rise in the ratio of overseas assets significantly reduces operational performance. The ratios of overseas revenue, branches, and operation in the US or Europe are all inversely correlated with performance. Overall, internationalization is negatively associated with the performance for subsidiary banks in financial holding companies. Internationalization significantly raises bank risk, whereas the nonperforming loan ratio is inversely related to operational performance.