| Summary: | 碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 95 === This thesis combines the analysis of theories and the empirical results. We picked top 100 banks as empirical samples. This study is trying to probe into the impact of region selections and branch quantities for foreign expansion on financial performance. Nowadays, under the backgrounds of financial internationalization and large-scale, the clustering effect has already impacted the basic model of international banks. Our empirical results are divided into two views as followings:
Firstly, in view of the motives and the strategies:
(1) Attractiveness of the host-country: Generally, foreign banks in host-country have positive effect in economical and financial development. In addition, it may also have a significantly positive effect in the position of financial center of host-country.
(2) Strategies of foreign banks: When top 100 banks located its branch in the high clustering city (herein named as “the first class city” and mainly refer to international financial center), the location has a significantlyly positive effect on foreign bank’s financial performance. However, if foreign banks expand its branch to overseas excessively, expand to the second class city (herein mainly refer to the regional financial center) and the third class city (herein mainly refer to emerging city and transitional city) at the same time, it has a significantly negative effect on foreign bank’s financial performance.
Secondly, in view of financial performance:
(1) Region Selection v.s. Financial Performance: The bank with the higher ROA and ROE which will select the first class city for foreign expansion, the location has a significantly positive effect on foreign bank’s financial performance. However, the foreign expansion both at the second class city and the third class city, or both at the first class city and the third class city, the region selections have a significantly negative effect on foreign bank’s financial performance.
(2) Bank Scale v.s. Financial Performance: The independent variables are branch quantities and total assets. The empirical result shows when the bank located at the higher clustering city (Z1) or the medium clustering city (Z2) will have significantly positive effect on bank’s financial performance. However, the lower clustering city (Z3) has no regular effect on bank’s financial performance. Besides, total assets produce insignificant effects on bank’s financial performance.
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