Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking Industry
Emerging economies have been attracting considerable amount of foreign direct investments to the banking industry through cross-border acquisitions and new establishments. Whether mode of entry influences the performance of foreign banks is an important question. This study analyzes the impact of...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Ala-Too International University
2016-05-01
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| Series: | Eurasian Journal of Business and Economics |
| Subjects: | |
| Online Access: | http://www.ejbe.org/EJBE2016Vol09No17p153AKIN-BAYYURT.pdf |
| _version_ | 1818146810505461760 |
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| author | Ahmet AKIN Nizamettin BAYYURT |
| author_facet | Ahmet AKIN Nizamettin BAYYURT |
| author_sort | Ahmet AKIN |
| collection | DOAJ |
| description | Emerging economies have been attracting considerable amount of foreign direct
investments to the banking industry through cross-border acquisitions and new
establishments. Whether mode of entry influences the performance of foreign
banks is an important question. This study analyzes the impact of entry mode on
the foreign bank performance in Turkey for the period before and after the global
financial crisis. Profitability and relative efficiencies are used to measure the
performance of banks. Then, Tobit and multivariate regressions are performed to
detect the performance differentials between the bank groups. Analysis reveals that
greenfield banks have superior performance over the takeover banks in terms of
only profitability. Mode of entry does not have a statistically significant effect on
efficiency. Besides, there are no efficiency or profitability gains for takeover banks
after acquisition. |
| first_indexed | 2024-12-11T12:25:16Z |
| format | Article |
| id | doaj.art-387a768c365841f98d2f71472c51f53d |
| institution | Directory Open Access Journal |
| issn | 1694-5948 1694-5972 |
| language | English |
| last_indexed | 2024-12-11T12:25:16Z |
| publishDate | 2016-05-01 |
| publisher | Ala-Too International University |
| record_format | Article |
| series | Eurasian Journal of Business and Economics |
| spelling | doaj.art-387a768c365841f98d2f71472c51f53d2022-12-22T01:07:24ZengAla-Too International UniversityEurasian Journal of Business and Economics1694-59481694-59722016-05-0191715316410.17015/ejbe.2016.017.09Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking IndustryAhmet AKIN0 Nizamettin BAYYURT1 Fatih UniversityIstanbul Technical UniversityEmerging economies have been attracting considerable amount of foreign direct investments to the banking industry through cross-border acquisitions and new establishments. Whether mode of entry influences the performance of foreign banks is an important question. This study analyzes the impact of entry mode on the foreign bank performance in Turkey for the period before and after the global financial crisis. Profitability and relative efficiencies are used to measure the performance of banks. Then, Tobit and multivariate regressions are performed to detect the performance differentials between the bank groups. Analysis reveals that greenfield banks have superior performance over the takeover banks in terms of only profitability. Mode of entry does not have a statistically significant effect on efficiency. Besides, there are no efficiency or profitability gains for takeover banks after acquisition.http://www.ejbe.org/EJBE2016Vol09No17p153AKIN-BAYYURT.pdfForeign acquisitionGreenfield investmentProfitabilityEfficiencyBanks |
| spellingShingle | Ahmet AKIN Nizamettin BAYYURT Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking Industry Eurasian Journal of Business and Economics Foreign acquisition Greenfield investment Profitability Efficiency Banks |
| title | Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking Industry |
| title_full | Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking Industry |
| title_fullStr | Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking Industry |
| title_full_unstemmed | Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking Industry |
| title_short | Mode of Entry and the Performance of Foreign Banks: Evidence from Turkish Banking Industry |
| title_sort | mode of entry and the performance of foreign banks evidence from turkish banking industry |
| topic | Foreign acquisition Greenfield investment Profitability Efficiency Banks |
| url | http://www.ejbe.org/EJBE2016Vol09No17p153AKIN-BAYYURT.pdf |
| work_keys_str_mv | AT ahmetakin modeofentryandtheperformanceofforeignbanksevidencefromturkishbankingindustry AT nizamettinbayyurt modeofentryandtheperformanceofforeignbanksevidencefromturkishbankingindustry |