Foreign asset risk exposure, DOI, and performance: An analysis of Canadian banks

Journal of International Business Studies

Volumn 41, Issue 5, 2010, Pages 845-860

  Hejazi, Walid ^a   Santor, Eric ^b  

^a UNIVERSITY OF TORONTO   (Canada)

^b BANK OF CANADA   (Canada)

Author keywords

Banking and finance; Multinational corporations (MNCs) and enterprises (MNEs); Risk and risk exposure

Indexed keywords

EID: 77953146512     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2009.86     Document Type: Article

References (38)

1. Allen, J., & Liu, Y. 2005. Efficiency and economies of scale of large Canadian banks, Bank of Canada Working Paper No. 2005-2013
2. Arellano, M., & Bond, S. 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2): 277-297.
3. BIS. 2006. Guidelines to the international consolidated banking statistics. Basel: Bank for International Settlements.
4. Bernard, A. B., & Jensen, J. B. 1999. Exceptional exporter performance: Cause, effect, or both? Journal of International Economics, 47(1): 1-25.
5. Bowman, E. H. 1980. A risk/return paradox for strategic management. Sloan Management Review, 21(3): 17-33.
6. Capar, N., & Kotabe, M. 2003. The relationship between international diversification and performance in service firms. Journal of International Business Studies, 34(4): 345-355.
7. Collinson, S. & Rugman, A. M. 2008. The regional nature of Japanese multinational business. Journal of International Business Studies, 39(2): 215-230.
8. Contractor, F. J., Kundu, S., & Hsu, C. 2003. A three-stage theory of international expansion: The link between multinationality and performance in the service sector. Journal of International Business Studies, 34(1): 5-18.
9. D'Souza, C., & Lai, A. 2003. Does diversification improve bank efficiency? The evolving financial system and public policy: 105-127 Proceedings of a conference held by the Bank of Canada, December. Ottawa: Bank of Canada.
10. Dunning, J. H. 1977. Trade, location of economic activity and MNE: A search for an eclectic approach. In B. Ohlin, P. O. Hesselborn & P. M. Wijkman (Eds), The international allocation of economic activity: 345-418. London: Macmillan.
11. Dunning, J. H. 1981. International production and multinational enterprise. Boston: Allen & Unwin.
12. Eden, L., & Thomas, D. E. 2004. What is the shape of the multinationality-performance relationship? Multinational Business Review, 12(1): 89-110.
13. Errunza, V. R., & Senbet, L. W. 1981. The effects of international operations on the market value of the firm: Theory and evidence. Journal of Finance, 36(2): 401-417.
14. Errunza, V. R., & Senbet, L. W. 1984. International corporate diversification, market valuation, and size-adjusted evidence. Journal of Finance, 39(3): 727-743.
15. Fatemi, A. M. 1984. Shareholder benefits from corporate international diversification. Journal of Finance, 39(5): 1325-1344.
16. Gande, A., Schenzler, C., & Senbet, L. W. 2009. Valuation effects of global diversification. Journal of International Business Studies, 40(9): 1515-1532.
17. Goldberg, L. 2001. When is US bank lending to emerging markets volatile? Federal Reserve Bank of New York: Staff Reports, March 2001.
18. Helpmann, E. 1984. A simple theory of international trade with multinational corporations. Journal of Political Economy, 92(3): 451-471.
19. Hsu, C., & Boggs, D. J. 2003. Internationalization and performance: Traditional measures and their decomposition. Multinational Business Review, 11(3): 23-49.
20. Jung, Y. 1991. Multinationality and profitability. Journal of Business Research, 23(2): 179-187.
21. Kim, W., Hwang, P., & Burgers, W. P. 1993. Multinationals' diversification and the risk-return trade-off. Strategic Management Journal, 14(4): 275-286.
22. Kim, W. S., & Lyn, E. O. 1986. Excess market value, the multinational corporation and Tobin's Q ratio. Journal of International Business Studies, 17(1): 119-125.
23. Kobrin, S. J. 1991. An empirical analysis of the determinants of global integration. Strategic Management Journal, 12(Special Issue): 17-31.
24. Lu, J. W., & Beamish, P. W. 2004. International diversification and firm performance: The S-curve hypothesis. Academy of Management Journal, 47(4): 598-609.
25. Markusen, J. R. 1984. Multinationals, multi-plant economies and the gains from trade. Journal of International Economics, 16(3-4): 205-226.
26. Missina, M., Tessier, D., & Dey, S. 2006. Stress testing the corporate loans portfolio of the Canadian banking sector, Bank of Canada Working Paper No. 2006-2047
27. Morck, R., & Yeung, B. 1991. Why investors value multinationality. Journal of Business, 64(2): 165-187.
28. Nachum, L. 2002. Liability of foreignness in global competition? Financial service MNEs in the city of London, Working Paper 229, ESRC Centre for Business Research, University of Cambridge.
29. Peng, M. W. 2005. Global strategy. Stamford, CT: South Western Publishers.
30. Porter, M. E. 1990. The competitive advantage of nations. New York: The Free Press.
31. Rugman, A. 1976. Risk reduction by international diversification. Journal of International Business Studies, 7(2): 75-80.
32. Rugman, A. M. 2005. The regional multinationals. Cambridge: Cambridge University Press.
33. Rugman, A. M., & Verbeke, A. 2004. A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies, 35(1): 3-18.
34. Santor, E. 2008. Contagion and the composition of Canadian banks' foreign asset portfolios: Do financial crises matter? Proceedings of a CGFS workshop held at the BIS in December 2006.
35. Stiroh, K. 2004. Diversification and banking: Is noninterest income the answer? Journal of Money, Credit and Banking, 36(5): 853-882.
36. Sullivan, D. 1994. Measuring the degree of internationalization of a firm. Journal of International Business Studies, 25(2): 325-342.
37. Vernon, R. 1971. Sovereignty at bay: The multinational spread of US enterprises. New York: Basic Books.
38. Zaheer, S. 1995. Overcoming the liability of foreignness. Academy of Management Journal, 38(2): 341-363.