Abstract
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 language | English |
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Pages (from-to) | 881-885 |
Journal | Applied Financial Economics |
Volume | 17 |
Issue number | 11 |
DOIs | |
Publication status | Published - 2007 |