Entry Mode Choice of Multinational Banks

Lehner, Maria (8. Dezember 2008): Entry Mode Choice of Multinational Banks. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2008-26

Abstract

When expanding abroad, a multinational bank faces a trade-off between accessing a foreign country via cross border lending or a financial foreign direct investment, i.e. greenfield or acquisition entry. We analyze the entry mode choice of multinational banks and explicitly derive the entry mode pattern in the banking industry. Moreover, we show that in less developed banking markets, a trend towards cross border lending and acquisition entry exists. Greenfield entry prevails in more developed markets. Furthermore, we identify a tendency towards acquisition entry in small and towards greenfield entry in larger host countries.

• Dokumententyp: Paper
• Publikationsform: Submitted Version
• Keywords: foreign bank entry, multinational bank, cross border lending, greenfield entry, acquisition entry
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Munich Discussion Papers in Economics ; Volkswirtschaft > Munich Discussion Papers in Economics > Industrieökonomik ; Volkswirtschaft > Munich Discussion Papers in Economics > Finanzmärkte ; Volkswirtschaft > Munich Discussion Papers in Economics > Transformationsökonomik ; Volkswirtschaft > Lehrstühle > Seminar für Komparative Wirtschaftsforschung
• Themengebiete: 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie ; 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: F37, G21, G34, L13, O16
• Sprache: Englisch

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