Abstract:
Market forces and regulation arbitrage are two explanations for the value effects of bank internationalization in global financial markets. We use event study method to examine these two explanations respectively, based on all bank internationalization events since 2006. The result shows Chinese capital market gives high abnormal returns for capital arbitrage opportunity, but doesn't respond to market forces. The finding remains robust when considering the value effect of creditor protection in target country. This research indicates that how banks choose their target area matters and also helps to understand the motivation of why financial institutions choose internationalization.
许荣, 徐星美, 计兴辰. 中资银行国际化的价值效应:源于市场机会还是监管套利？——来自中国资本市场的证据[J]. 金融研究, 2015, 423(9): 96-111.
XU Rong XU, Xingmei JI, Xingchen. The Value Effects of Commercial Banks Internationalization: from Market Forces or Regulation Arbitrage?Evidence from Capital Market in China. Journal of Financial Research, 2015, 423(9): 96-111.
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