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

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