Efficiency of multinational banks: An empirical investigation
Document Type
Article
Publication Date
1-1-1998
Abstract
This paper conducts a comparative analysis of the productive efficiency of foreign-owned and US-owned multinational commercial banks operating in the US. A multiproduct translog stochastic-cost frontier model approach is used to estimate cost inefficiency scores. Ordinary Least Squares and Tobit regressions are used to identify the key factors associated with inefficiency. The results indicate that foreign-owned multinational banks operating in the US are significantly less efficient than their US-owned counterparts and that large multinational banks in holding company networks carrying fewer foreign assets tend to be more efficient.
Identifier
0001807274 (Scopus)
Publication Title
Applied Financial Economics
External Full Text Location
https://doi.org/10.1080/096031098332727
ISSN
09603107
First Page
689
Last Page
696
Issue
6
Volume
8
Recommended Citation
Chang, C. Edward; Hasan, Iftekhar; and Hunter, William C., "Efficiency of multinational banks: An empirical investigation" (1998). Faculty Publications. 16560.
https://digitalcommons.njit.edu/fac_pubs/16560
