An exploration into the home field, global advantage and liability of unfamiliarness hypotheses in multinational banking

Sufian, Fadzlan (2011) An exploration into the home field, global advantage and liability of unfamiliarness hypotheses in multinational banking. IIMB Management Review, 23 (3). pp. 163-176. ISSN 0970-3896 (P), 2212-4446 (O)

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Abstract

This paper seeks to expand the efficiency paradigm of the eclectic theory in multinational banking within the context of a developing country banking sector. We employ the Data Envelopment Analysis (DEA) method to examine the efficiency of multinational banks operating in the Malaysian banking sector from 1995 to 2007. We then employ the panel regression analysis to examine the impact of origins on bank efficiency. We find foreign banks from North America to be the most efficient banking group, providing support to the ‘limited form’ of the global advantage hypothesis. On the other hand, we do not find evidence on both the liability of unfamiliarness and home field advantage hypotheses.

Item Type:	Article (Journal)
Additional Information:	6678/5206
Uncontrolled Keywords:	Multinational banks, Cost efficiency, Data envelopment analysis, panel regression analysis, Malaysia
Subjects:	H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Fadzlan Sufian
Date Deposited:	04 Nov 2011 14:38
Last Modified:	21 Jun 2013 16:13
URI:	http://irep.iium.edu.my/id/eprint/5206

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