Does Foreign Ownership Foster Bank Performance?

B.W. Lensink, I. Naaborg

Research output: Contribution to journalArticleAcademicpeer-review

20 Citations (Scopus)


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.
Original languageEnglish
Pages (from-to)881-885
JournalApplied Financial Economics
Issue number11
Publication statusPublished - 2007


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