• A note on foreign bank investment in the United States

      Paulo Esperanca, José; Gulamhussen, Azzim (Applied Financial Economics, 2002)
    • A theoretical perspective on the location of banking FDI

      Gulamhussen, Azzim (Management International Review, 2009)
    • Accounting and non-accounting determinants of default: The case of privately-held firms

      Bhimani, Alnoor; Gulamhussen, Azzim; da Rocha Lopes, Samuel (Journal of Accounting and Public Policy, 2010)
    • Bank business models, regulation, and the role of financial market participants in the global financial crisis

      Clare, Andrew; Meryem, Duygun; Gulamhussen, Azzim; Pozzolo, Alberto Franco (Journal of Banking and Finance, 2016)
      The recent financial crisis shone a spotlight on several key issues: bank regulation, bank models, and the relationship between traditional banking, the interbank markets and the markets for complex financial derivatives. Indeed, the role that derivatives such as Credit Default Swaps and Collateralised Debt Obligations played in the credit bubble and the subsequent credit crunch may appear to have made this financial crisis unique. However, the fundamental cause of this crisis, which led directly to the worst global recession since the 1930s, is all too familiar: ultimately, too much money was lent to too many people who could not afford to pay it back. It was a classic bank crisis of over lending, but this time on a global scale.
    • Choice of scale by banks in financial centers

      Gulamhussen, Azzim (International Business Review, 2007)
    • Defaults in bank loans to SMEs during the financial crisis

      Duarte, Fabio Dias; Gama, Ana Paula Matias; Gulamhussen, Azzim (Small Business Economics, 2018)
      We investigate the role of (business) collateral and (personal) guarantees alongside small and medium enterprise (SME), lending bank and loan characteristics, macroeconomic conditions, sectors, and geographic locations while controlling for unobserved time effects in predicting default at the peak of the financial crisis. First, we find a positive relation between collateral and default, and a negative relation between guarantees and default. Second, we find a negative relation between the joint influence of collateral and high credit score, and a positive relation between the joint influence of collateral and low credit score and default. We also find a negative relation between the joint influence of guarantees and high credit score. These findings are relevant for SME policies aimed at facilitating access to credit, reducing the cost of borrowing, and decreasing default, risk management of banks, and the application of theories of financial economics in the context of a financial crisis.
    • Dividend payouts: Evidence from U.S. bank holding companies in the context of the financial crisis

      Abreu, Filipe José; Gulamhussen, Azzim (Journal of Corporate Finance, 2013)
    • Do multinational banks create or destroy shareholder value?

      Gulamhussen, Azzim; Pinheiro, Carlos; Pozzolo, Alberto Franco (Financial Markets Institutions and Instruments, 2017)
      We question whether the international diversification of multinational banks creates or destroys shareholder value. Based on a sample of 384 listed banks from 56 countries we provide new and robust evidence that bank cross-border activities create shareholder value, as shown by an economically and statistically significant premium for international diversification. Our results are confirmed controlling for bank fixed effects, time-varying bank characteristics, reverse causality, functional diversification, and instrumenting for the choice to expand abroad. The increase in shareholder value is slightly larger for banks in the middle range of international diversification and in the case of expansion towards less developed countries.
    • Extending internalisation theory

      Casson, Mark; Dark, Ken; Gulamhussen, Azzim (International Business Review, 2009)
    • FDI in investment banking

      Gulamhussen, Azzim (Thunderbird International Business Review, 2012)
      The determinants of foreign direct investment (FDI) in investment banking are tested using unique data obtained from 43 semistructured interviews with senior managers of multinational banks. Consistent with internalization theory, the decision to service new customers is positively and significantly related to FDI. In line with internalization theory and the sequential entry framework, the perceived risk of doing business abroad is negatively and significantly related to FDI. Lock‐in is positively and significantly related to FDI. Very few managers consider it important to follow domestic customers, which does not emerge as significantly related to FDI. Qualitative information facilitated the interpretation of multiple empirical estimations.
    • Female directors in bank boardrooms and their influence on performance and risk-taking

      Gulamhussen, Azzim; Fonte Santa, Silvia (Global Finance Journal, 2015)
      We assess the role of women in bank boardrooms in a sample of 461 large banks from OECD countries. After controlling for bank and country specific effects, we find that the presence and percentage of female directors in boardrooms have a positive influence on performance. We also find a negative relation between the presence of women in boardrooms and risk-taking. These relations hold for the supervisory board, and with some exceptions for the audit committee. For a sub-sample of 134 listed banks we find that markets positively value the presence of women on the board, supervisory board and audit committee.
    • Foreign direct investment in Brazil and home country political risk: the case of Brazil

      Aguiar, Sandra; Aguiar-Conraria, Luis; Gulamhussen, Azzim; Magalhaes, Pedro (Latin America Research Review, 2012)
    • Internal capital markets and the funding of subsidiaries of multinational banks

      Gulamhussen, Azzim; Lavrador, Isabel (International Finance, 2014)
    • International diversification and risk of multinational banks: Evidence from the pre-crisis period

      Gulamhussen, Azzim; Pinheiro, Carlos; Pozzolo, Alberto Franco (Journal of Financial Stability, 2014)
    • Internationalization, diversification and risk in multinational banks

      Gulamhussen, Azzim; Pinheiro, Carlos; Pozzolo, Alberto Franco (Bancaria, 2012)
    • Owner liability and financial reporting information as predictors of firm default in bank loans

      Bhimani, Alnoor; Gulamhussen, Azzim; da Rocha Lopes, Samuel (Review of Accounting Studies, 2014)
    • (Re)Testing the follow the customer hypothesis in multinational bank investment

      Paulo Esperanca, José; Gulamhussen, Azzim (Journal of Multinational Financial Management, 2001)
    • The determinants of venture capital across Europe - Evidence across countries

      Gomes Santana Félix, Elisabete; Pacheco Pires, Cesaltina; Gulamhussen, Azzim (Journal of Financial Services Research, 2012)
      This article analyses the determinants of European venture capital activity. The main novelty of our work is in accounting for the idiosyncrasies of the European venture capital market. In particular, we investigate whether the size of the merger and acquisition market (M&A) is important in explaining venture capital. Moreover, our work is the first that analyses the impact of the degree of information asymmetry at the macro level, the direct impact of the level of entrepreneurial activity and the impact of the unemployment rate on venture capital activity. We use aggregate data from 23 European countries for the period 1998–2003 to estimate panel data models with fixed and random effects. Our results reveal that the size of the M&A market and the market-to-book ratio have a positive impact on venture capital activity whereas the unemployment rate influences the venture capital market negatively. These results highlight the importance of the exit environment and of the degree of asymmetric information for the venture capital market.
    • The effectiveness of auditor's going concern evaluation as an external governance mechanism: Evidence from bank loan defaults

      Bhimani, Alnoor; Gulamhussen, Azzim; da Rocha Lopes, Samuel (The International Journal of Accounting, 2009)
    • The effectiveness of regulatory capital requirements prior to the onset of the financial crisis†

      Abreu, Filipe José; Gulamhussen, Azzim (International Review of Finance, 2015)
      We extend the literature on the role of capital requirements as a regulatory tool by developing a continuous measure of the degree of regulatory pressure and by examining data on US commercial banks during the economic upturn that preceded the 2007-2009 financial crisis. Our findings indicate the inability of regulatory pressure to force banks to build capital buffers during the economic upturn that preceded the crisis. These findings are consistent with the view that banks entered the crisis with inadequate levels of capital. Our findings support the endeavors of regulators in explicitly demanding capital buffers in their new regulatory framework.