IDEAS home Printed from https://ideas.repec.org/a/ibn/ibrjnl/v11y2018i9p119-128.html

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
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ibr/article/download/76833/42818
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ibr/article/view/76833
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William P Wan & Daphne W Yiu & Robert E Hoskisson & Heechun Kim, 2008. "The performance implications of relationship banking during macroeconomic expansion and contraction: a study of Japanese banks' social relationships and overseas expansion," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(3), pages 406-427, April.
    2. Chen, Minghua & Wu, Ji & Jeon, Bang Nam & Wang, Rui, 2017. "Do foreign banks take more risk? Evidence from emerging economies," Journal of Banking & Finance, Elsevier, vol. 82(C), pages 20-39.
    3. Guo, Zi-Yi, 2017. "Comparison of Error Correction Models and First-Difference Models in CCAR Deposits Modeling," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 17(4).
    4. Aliber, Robert Z, 1984. "International Banking: A Survey," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 661-678, November.
    5. Liang, Hsin-Yu & Ching, Yann Peng & Chan, Kam C., 2013. "Enhancing bank performance through branches or representative offices? Evidence from European banks," International Business Review, Elsevier, vol. 22(3), pages 495-508.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kowalewski, Oskar, 2023. "Effect of operating multiple affiliates on the performance of subsidiaries in the same host country," Research in International Business and Finance, Elsevier, vol. 65(C).
    2. Kumar, Amit & Operti, Elisa, 2025. "Recessions, institutions, and regional exploration," Research Policy, Elsevier, vol. 54(3).
    3. Kowalewski, Oskar, 2023. "Organizational mode choices of multinational banks abroad," Global Finance Journal, Elsevier, vol. 57(C).
    4. Jérémie BERTRAND & Caroline PERRIN, 2022. "Girls Just Wanna Have Funds? The Effect of Women-Friendly Legislation on Women-Led Firms’ Access to Credit," Working Papers 2022-ACF-01, IESEG School of Management.
    5. Alfred Janc & Pawel Marszalek, 2015. "Effects of internationalization, privatisation and demutualization of the financial sector on supply of finance and stability," Working papers wpaper119, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    6. Franklin Allen & Meijun Qian, 2025. "Alternative finance in the international business context: a review and future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 56(1), pages 43-61, February.
    7. Boulanouar, Zakaria & Alqahtani, Faisal & Hamdi, Besma, 2021. "Bank ownership, institutional quality and financial stability: evidence from the GCC region," Pacific-Basin Finance Journal, Elsevier, vol. 66(C).
    8. Salah Mohammed Abdulahi & Mekonnen Kumlachew Yitayaw & Habtamu Legese Feyisa & Wondmagegn Biru Mamo, 2023. "Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2186039-218, December.
    9. Wu, Ji & Guo, Mengmeng & Chen, Minghua & Jeon, Bang Nam, 2019. "Market power and risk-taking of banks: Some semiparametric evidence from emerging economies," Emerging Markets Review, Elsevier, vol. 41(C).
    10. Skała, Dorota, 2021. "Loan loss provisions and income smoothing – Do shareholders matter?," International Review of Financial Analysis, Elsevier, vol. 78(C).
    11. Hoang Tien Nguyen & Ai Ngoc Nhan Le & Quang Thu Luu & Ngoc Thi Thanh Nguyen & Khoa Dang Duong, 2023. "Foreign Ownership, Investor Attention and the Risk-Taking Behavior of Property and Casualty Insurance Firms: Evidence From Vietnam," SAGE Open, , vol. 13(4), pages 21582440231, December.
    12. Oskar Kowalewski, 2022. "Eect of operating multiple aliates on the performance of subsidiaries in the same host country," Working Papers 2022-ACF-02, IESEG School of Management.
    13. Aguilera, Ruth V. & Crespí-Cladera, Rafel & Infantes, Paula M. & Pascual-Fuster, Bartolomé, 2020. "Business groups and internationalization: Effective identification and future agenda," Journal of World Business, Elsevier, vol. 55(4).
    14. Thomas Begley & Naresh Khatri & Eric Tsang, 2010. "Networks and cronyism: A social exchange analysis," Asia Pacific Journal of Management, Springer, vol. 27(2), pages 281-297, June.
    15. Dia, Enzo & VanHoose, David, 2017. "Capital intensities and international trade in banking services," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 46(C), pages 54-69.
    16. Eaton, J., 1994. "Cross-Border Banking," Papers 26, Boston University - Department of Economics.
    17. Kanga, Désiré & Murinde, Victor & Soumaré, Issouf, 2020. "Capital, risk and profitability of WAEMU banks: Does bank ownership matter?," Journal of Banking & Finance, Elsevier, vol. 114(C).
    18. Xuan Vinh Vo, 2020. "Foreign Investors and Stock Price Crash Risk: Evidence from Vietnam," International Review of Finance, International Review of Finance Ltd., vol. 20(4), pages 993-1004, December.
    19. Cristian Barra & Anna Papaccio, 2024. "A parametric approach to institutional quality and bank cost inefficiency in diversity context: The case of Italy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(3), pages 723-759, September.
    20. Dany Aoun & Almas Heshmati, 2008. "International diversification, capital structure and cost of capital: evidence from ICT firms listed at NASDAQ," Applied Financial Economics, Taylor & Francis Journals, vol. 18(12), pages 1021-1032.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:9:p:119-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.