Foreign ownership, bank information environments, and the international mobility of corporate governance

• 成果类型: Article
• 署名作者: Fang, Yiwei; Hasan, Iftekhar; Leung, Woon Sau; Wang, Qingwei
• 署名单位: Illinois Institute of Technology; Fordham University; Bank of Finland; University of Sydney; University of Edinburgh; Cardiff University; Leibniz Association; Zentrum fur Europaische Wirtschaftsforschung (ZEW)
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00240-w
• 发表日期: 2019
• 页码: 1566-1593
• 关键词: multiple regression analysis; Agency theory; Internationalization theories and foreign market entry; International financial integration; foreign bank ownership; Stock price synchronicity

摘要

This paper investigates how foreign ownership shapes bank information environments. Using a sample of listed banks from 60 countries over 1997-2012, we show that foreign ownership is significantly associated with greater (lower) informativeness (synchronicity) in bank stock prices. We also find that stock returns of foreign-owned banks reflect more information about future earnings. In addition, the positive association between price informativeness and foreign ownership is stronger for foreign-owned banks in countries with stronger governance, stronger banking supervision, and lower monitoring costs. Overall, our evidence suggests that foreign ownership reduces bank opacity by exporting governance, yielding important implications for regulators and governments.