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Local Versus Foreign Banks: Capital Structure and the Financial Crisis

Authors: Sameh Jouida;

Local Versus Foreign Banks: Capital Structure and the Financial Crisis

Abstract

Our paper examines the bank capital structure of French domestic and foreign banks. There are an apparent link between foreign presence and the capital structure of domestic firms. We check if the capital structure of a foreign banks is significantly different from domestic banks. Our dataset comprises 170 banks operating in the French market over the period 2000-2012. We estimate models with generalized method of moments (GMM). Our results show differences in the effect of most factors on the banks’ share of equity, according to the domestic and foreign banks. We find that specific bank’s characteristics and macroeconomic factors affect significantly the capital structure of domestic than foreign banks. All these findings are sensitive after taking into account the recent financial crisis. Thus, the foreign banks operating in France tend to be less debt level in crisis period and more profitable than French domestic banks.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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