Internationalization and Performance of Taiwanese Banks
摘要
This research stresses entry location factors, which may affect Taiwanese banks' internationalization strategy, and the relationship between banks' internationalization and performance. This article combines foreign direct investment theory with country- and bank-level panel data, and analyzes the 219 affiliates of all Taiwanese commercial banks in 25 countries from 2000 to 2005. The results generally support the predictions. First, export and foreign direct investment by the Taiwanese manufacturing industry are the most important location factors. Second, increasing the levels of internationalization of banks may improve their operational efficiency but does not directly improve financial performance. Internationalization improves operational efficiency, which in turn increases financial performance. Finally, we suggest that the current regulations should be released.