• 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.
    • 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.
    • 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)