Browsing by Subject "F23"

Sort by: Order: Results:

Now showing items 1-13 of 13
  • Hasan, Iftekhar; Xie, Ru (2012)
    BOFIT Discussion Papers 8/2012
    Published in Emerging Markets Finance and Trade, Volume 49, Issue 2, 1 March 2013, Pages 4-18 as Foreign bank entry and bank corporate governance in China
    China employs a unique foreign bank entry model. Instead of allowing full foreign control of domestic banks, foreign investors are only permitted to be involved in the local banks as minority shareholders. At the same time, foreign strategic investors are expected to commit to bank corporate governance improvement and new technology support. In this context, the paper examines the effect of foreign strategic investors on Chinese bank performance. Based on a unique data set of bank ownership, performance, corporate governance and stock returns from 2003 to 2007, our regression and event study analysis results suggest that active involvement of foreign strategic investors in bank management have improved the corporate governance model of Chinese banks from a control based model to a market oriented model, and accordingly have promoted bank performance. JEL Classification Code: G21, G28, G34, F23 Keywords: China, Foreign Market Entry, Corporate Governance
  • François, Abel; Panel, Sophie; Weill, Laurent (2019)
    BOFIT Discussion Papers 12/2019
    Since political uncertainty is greater in dictatorships than in democracies, we test the hypothesis that foreign investors scrutinize public information on dictators to assess this risk. In particular, we as-sume they use five suitable dictators’ characteristics: age, political experience, education level, ed-ucation in economics, and prior experience in business. We perform fixed effects estimations on an unbalanced panel of 100 dictatorial countries from 1973 to 2008 to explain foreign direct investment (FDI) inflows. We find that educated dictators are more attractive to foreign investors. We obtain strong evidence that greater educational attainment of the leader is associated with higher FDI. We also find evidence that the leader having received education in economics and prior experience in business is associated with greater FDI. By contrast, the leader’s age, and political experience have no relationship with FDI. Our results are robust to several tests and checks, including a comparison with democracies.
  • Crowley, Patrick M.; Habibdoust, Amir (2013)
    Bank of Finland Research Discussion Papers 34/2013
    This paper aims to examine the relationship between exchange rate movements and the stock return of firms at different time horizons by employing wavelet analysis. In particular, we use the maximum overlap discrete wavelet transform (MODWT) to decompose the exchange rate movement and the US firm's stock return over the period January 2006 to July 2012. The results reveal that at longer horizons not only does the number of firms which are exposed to exchange rate volatility increase but also the degree of exchange rate exposure increases. What is more, the sensitivity to exchange rate volatility is stronger at longer horizons for importing firms than for exporting firms, which shows an asymmetry in the usage of hedging strategies between importers and exporters. Key words: Discrete Wavelet analysis, Exchange Rate Volatility, Hedging strategy JEL Classification: C32, F31, F23
  • Berger, Allen N.; Hasan, Iftekhar; Zhou, Mingming (2007)
    Bank of Finland Research Discussion Papers 16/2007
    Published in Journal of Banking & Finance, Volume 33, Issue 1, January 2009, Pages 113-130
    China is reforming its banking system, partially privatizing and permitting minority foreign ownership of three of the dominant 'big four' state-owned banks. This paper seeks to help predict the effects of this change by analysing the efficiency of virtually all Chinese banks in the years 1994-2003. Our findings suggest the big four banks are by far the least efficient and foreign banks the most efficient while minority foreign ownership is associated with significantly improved efficiency. We present corroborating robustness checks and offer several credible mechanisms through which minority foreign owners can increase Chinese bank efficiency. These findings suggest that minority foreign ownership of the big four is likely to significantly improve performance. Keywords: China, foreign banks, efficiency, foreign ownership JEL classification numbers: G21, G28, G34, F23
  • Yakovlev, Andrei; Freinkman, Lev; Ershova, Nina (2018)
    BOFIT Policy Brief 5/2018
    We explore the role and organizing capacity of foreign business associations (FBAs) in the Russian context. Considering the potential role of FBAs as effective intermediaries during time of aggravated international relations, the paper examines the problems and mechanisms of foreign firms’ interaction with key national partners in their host countries and describes the conditions that lead to effective dialogue between FBAs and national governments. The main phases and factors of evolution are identified for Russia’s two main channels of foreign firms’ collective actions: The Foreign Investment Advisory Council, which is chaired by Russia’s prime minister, and FBAs. A comparative analysis of the efficiencies of each channel finds that political, rather than economic or institutional, factors play the dominant role in explaining the shifting efficiency of collective action of foreign firms over time.
  • Hasan, Iftekhar; Wall, Larry D. (2003)
    Suomen Pankin keskustelualoitteita 33/2003
    This paper analyses the determinants of banks loan loss allowances for samples of US banks and three non-US samples: a group of 21 countries, Canada and Japan.The model includes fundamental (or non-discretionary) determinants of the allowance such as non-performing loans, and discretionary determinants such as income before the loan loss provision.The results suggest that the loan loss allowance is sensitive to pre-provision income in almost all samples.However, the results also suggest that some variables thought to reflect fundamental factors in US analysis, such as net chargeoffs, are not significant factors for non-US banks. Key words: loan loss allowance, accounting standards, international banking, nonperforming loan, discretionary accruals JEL classification numbers: G21, G28, E58, F23, G33
  • Brada, Josef C.; Chen, Chunda; Jia, Jingyi; Kutan, Ali M. (2020)
    BOFIT Discussion Papers 10/2020
    Using event study methodology, we investigate whether bilateral investment protection treaties afford protection to foreign investors. Examining arbitral decisions for firms from six countries shows that firms that received awards from arbitrators gained in market value by as much as 3%. Per dollar awarded, firms gained over $20 in market value. Thus, we conclude that the system of arbitration does afford significant benefits to firms that can demonstrate that they have been injured by host governments who violated the terms of the relevant investor protection treaty. We also find some evidence that arbitral decisions are anticipated by stock markets.
  • Xing, Yuqing (2006)
    BOFIT Discussion Papers 15/2006
    This paper examines the FDI-exchange rate nexus in the context of one FDI source and two host countries.It focuses on the effect of exchange rates on relative FDI inflows between the two host countries.The theoretical analysis shows explicitly that relative FDI inflows are a function of relative real exchange rates.In particular, if one host country devalues its currency against that of the source country more than the other does, FDI into the former country will be expected to increase relative to the other country. The theoretical inference is examined with Japanese FDI in manufacturing industries of China and ASEAN-4 (Indonesia, Malaysia, the Philippines and Thailand).The empirical results generally support the theoretical conclusion, suggesting that the real devaluation of the Chinese Yuan undercut FDI into the ASEAN-4. Keywords: FDI, Exchange rate, China, ASEAN-4 JEL classification: F14, F23, F31
  • Xing, Yuqing (2007)
    BOFIT Discussion Papers 1/2007
    Published in Journal of Asian Economics, Volume 18, Issue 4, August 2007, Pages 685-700
    This paper analyzes dynamic changes of China's intra-industry trade with its major trading partners, Japan and the US, from 1980 to 2004.It also investigates to what extent foreign direct investment promoted intra-industry trade.The empirical results show that, while shares of China's intra-industry trade with both Japan and U.S rose substantially, its intraindustry trade with Japan has reached 35 per cent of the overall trade, considerably larger than 10 per cent with the US.Sino-Japan intra-industry trade concentrated in the electrical and machinery sectors accounted for 52 per cent and 46 per cent of overall trade respectively.On the other hand, it is in the chemical and food sectors where intra-industry trade represented a relatively large proportion of Sino-US trade, 50 per cent and 30 per cent accordingly in each sector.In addition, the analysis indicates that Japanese direct investment in China performed a significant role in enhancing intra-industry trade between Japan and China.However, it found no evidence that the US direct investment in China contributed to the growth of the bilateral intra-industry trade between the two countries. JEL:F14, F23 Key Words: Intra-industry trade, FDI, China
  • Pekkala Kerr, Sari; Kerr, William R. (2017)
    Bank of Finland Research Discussion Papers 3/2017
    We study the prevalence and traits of global collaborative patents for U.S. public companies, where the inventor team is located both within and outside of the United States. Collaborative patents are frequently observed when a corporation is entering into a new foreign region for innovative work, especially in settings where intellectual property protection is weak. We also connect collaborative patents to the ethnic composition of the firm s U.S. inventors and cross-border mobility of inventors within the firm. The inventor team composition has important consequences for how the new knowledge is exploited within and outside of the firm.
  • Leino, Topias; Ali-Yrkkö, Jyrki (2014)
    Bank of Finland Research Discussion Papers 12/2014
    We study Foreign Direct Investment (FDI) as a measure of real investment (gross fixed capital formation) in foreign-owned companies. Our data include firm-level information on FDI in-flows and real investment of foreign-owned companies located in Finland. Our results suggest that the recorded annual inflows of FDI do not constitute an accurate measure of annual real investments in foreign-owned companies. Since the beginning of the global recession in 2008, FDI inflows have significantly underestimated real investments in foreign companies in Finland. We seek to explain these findings by describing Finnish FDI target enterprises and subgroups and the nature of their FDI flows from several perspectives. We show how FDI target enterprises use other sources of funding, in addition to FDI, and how a few large transactions, often related to cross-border mergers and acquisitions, can explain a great deal of the recorded annual FDI flows. We also describe how Finland's FDI stock and flow data increasingly consist of funds that merely pass through the FDI enterprises and subgroups, arguably with little or no real economic linkage to the Finnish economy, and we present a method for estimating such pass-through funding. Keywords: Foreign Direct Investment, Gross Fixed Capital Formation, Investment, Measurement, Pass-through Investments JEL classification numbers: F210, F23, E220
  • Sanfilippo, Marco (2013)
    BOFIT Discussion Papers 26/2013
    Published in International Business Review, Volume 24, Issue 4, 2015, Pages 665-676 as FDI from emerging markets and the productivity gap-An analysis on affiliates of BRICS EMNEs in Europe.
    This paper analyses differences in total factor productivity and other competitiveness indicators of emerging multinationals (EMNEs) from Brazil, Russia, India, China and South Africa (BRICS) against their counterparts from developed countries and domestic MNEs. The current literature suggests that early internationalisation strategies by EMNEs are characterised by a lack of experience in diverse economic and cultural contexts and are explicitly driven by asset-exploration strategies. If true, this should translate into significant differences in performance, especially when they invest in developed countries. Based on a large database on foreign affiliates in Europe, results find EMNEs at the bottom of the productivity ladder, with a productivity gap around 20-30 percentage points compared to more established competitors. Moreover, the paper points to high heterogeneity among EMNEs that affects their relative performance according to their current levels of productivity or to differences in their sectorial and geographic patterns. Keywords: emerging market multinationals, total factor productivity, foreign direct in-vestment. JEL Codes: F21; F23
  • Pula, Gabor; Santabárbara, Daniel (2012)
    BOFIT Discussion Papers 23/2012
    There is an ongoing debate in the literature about the quality content of Chinese exports and to what extent China imposes a threat to the market positions of advanced economies. While China's export structure is very similar to that of the advanced world, its export unit values are well below the level of developed economies. Building on the assumption that unit values reflect quality the prevailing view of the literature is that China exports low quality varieties of the same products than its advanced competitors. This paper challenges this view by relaxing the assumption that unit values reflect quality. We derive the quality of Chinese exports to the European Union by estimating disaggregated demand functions from a discrete choice model. The paper has three major findings. First, China's share on the European Union market is larger than would be justified only by its low average prices, implying that the quality of Chinese exports is high compared to many competitors. Second, China has gained quality relative to other competitors since 1995, indicating that China is climbing up the quality ladder. Finally, our analysis on the supply side determinants reveals that the relatively high quality of Chinese exports is related to processing trade and the increasing role of global production networks in China. Keywords: Chinese exports, vertical product differentiation, quality ladder, global production networks, discrete choice model, COMEXT database JEL Classification: F1, F12, F14, F15, F23