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Degree of Internationalization, Staff Localization and Bank’s Overseas Performance: Evidence from China's Top Four Banks

Author

Listed:
  • Li Xiong
  • Ke Xu
  • Cong Hu
  • Xiaojuan He

Abstract

In international expansion, staff localization helps Chinese commercial banks to provide services to meet local needs. This paper explores the mediation effect of staff localization and refines the measurement of bank’s overseas performance, to reveal the transmit channel of how the degree of internationalization (DOI) affects bank’s overseas performance. With data from 2009 to 2015 of China’s top five banks as the sample to build a panel data model, the result suggests that staff localization fully mediates the relationship between DOI and bank’s overseas performance, and DOI exercises positive effect on the overseas performance of intermediary business, but no significant effect on the overseas performance of deposit/loan business. Implications and suggestions for bank’s overseas practice are discussed.

Suggested Citation

  • Li Xiong & Ke Xu & Cong Hu & Xiaojuan He, 2018. "Degree of Internationalization, Staff Localization and Bank’s Overseas Performance: Evidence from China's Top Four Banks," International Business Research, Canadian Center of Science and Education, vol. 11(9), pages 119-128, September.
    • Handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:9:p:119-128
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    References listed on IDEAS

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    More about this item

    Keywords

    degree of internationalization; staff localization; deposit/loan business; intermediary business;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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