Internationalization, diversification and risk in multinational banks
Gulamhussen, Azzim ; Pinheiro, Carlos ; Pozzolo, Alberto Franco
Gulamhussen, Azzim
Pinheiro, Carlos
Pozzolo, Alberto Franco
Citations
Altmetric:
Publication Type
Journal article
Editor
Supervisor
Publication Year
2012
Journal
Bancaria
Book
Publication Volume
Publication Issue
11
Publication Begin page
Publication End page
Publication Number of pages
Collections
Abstract
Since the beginning of the financial crisis, multinational banks have been accused of being among the major causes of the financial system’s destabilization. But the available empirical evidence on the relationship between international diversification, value creation and riskiness of financial intermediaries does not provide a unique answer. In this paper we analyze such relationship on a sample of over 500 banks from 56 countries in the seven years before the beginning of the financial crisis. Our evidence shows a positive and statistically significant effect of international diversification on both value and riskiness.
Research Projects
Organizational Units
Journal Issue
Keywords
Accounting & Finance, Financial Services Management, Financial Services & Insurance, Financial Services Management