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Articles 1 - 6 of 6
Full-Text Articles in Business
Income Volatility Of Indonesian Banks After The Asian Financial Crisis, Barry Williams
Income Volatility Of Indonesian Banks After The Asian Financial Crisis, Barry Williams
Barry Williams
This paper considers the factors that determine Indonesian bank risk both before and after the Asian Financial Crisis (AFC). In the pre-AFC period, bank capital holdings are positively associated with bank revenue risk, which is attributed to a combination of regulatory laxity as well as laxity of enforcement. In the post-AFC period, capital is found to reduce bank risk in a non-linear manner. Franchise value is associated with lower bank risk, but in a non-linear manner; low levels of franchise value are associated with increased bank risk, while higher levels of franchise value result in lower bank risk. It is …
What Determines Differences In Foreign Bank Efficiency? Australian Evidence, Jan-Egbert Sturm, Barry Williams
What Determines Differences In Foreign Bank Efficiency? Australian Evidence, Jan-Egbert Sturm, Barry Williams
Barry Williams
This study examines the factors that determine differences in efficiency of foreign banks in the host market (Australia). The impact of home market, host market and parent bank characteristics are considered within the frameworks offered by comparative advantage and new trade theories. Parametric distance functions are used to estimate the efficiency of foreign banks in Australia, and the robustness of model specification is tested using both general-to-specific modelling and extreme bounds analysis. It is found that following clients reduces the efficiency of profit creation. Incumbent bank's market share acts as a barrier to entry, while parent bank profits do not …
Bank Risk And Return: The Impact Of Bank Non-Interest Income, Barry Williams, Laurie Prather
Bank Risk And Return: The Impact Of Bank Non-Interest Income, Barry Williams, Laurie Prather
Barry Williams
Purpose – The purpose of this paper is to consider the impact on bank risk of portfolio diversification between traditional margin income and fee-based income for banks operating in Australia.Design/methodology/approach – Considering several performance variables, this analysis compares the benefits of diversification across different bank types relative to margin income and fee income. Further, regression analysis considers bank risk and revenue concentration.Findings – This paper documents that fee-based income is riskier than margin income but offers diversification benefits to bank shareholders. While improving bank risk-return trade-off, these benefits are of second order importance compared to the large negative impact of …
Foreign Bank Efficiency In Australia: What Makes A Difference?, Jan-Egbert Sturm, Barry Williams
Foreign Bank Efficiency In Australia: What Makes A Difference?, Jan-Egbert Sturm, Barry Williams
Barry Williams
Purpose – The purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign-owned banks operating in Australia. The relevance of both comparative advantage theory and new trade theory to multinational banking in Australia will be tested.
Design/methodology/approach – A three stage research method is employed. First, estimates of foreign bank efficiency are drawn from a larger sample of domestic and foreign banks in Australia. Efficiency is estimated using parametric distance functions, applying several different specifications of inputs and outputs. Second, factor analysis is used to estimate a series of common factors drawn from …
Factors Determining Net Interest Margins In Australia: Domestic And Foreign Banks, Barry Williams
Factors Determining Net Interest Margins In Australia: Domestic And Foreign Banks, Barry Williams
Barry Williams
This study tests the application of the Ho and Saunders (1981) model of bank net interest margins (NIMs), and its subsequent developments, using Australian data. The core elements of this model apply in Australia. Bank market power is found to increase NIMs, consistent with McShane and Sharpe (1985), with evidence of bank buying market share and mispricing for risk. Operating costs also have an important role in determining NIMs, together with implied payments and management quality. Bank NIMs are found to have fallen over the study period.
The Defensive Expansion Approach To Multinational Banking: Evidence To Date, Barry Williams
The Defensive Expansion Approach To Multinational Banking: Evidence To Date, Barry Williams
Barry Williams
This paper integrates the defensive expansion hypothesis in multinational banking with the internalisation approach to the multinational enterprise. This framework is then used to structure a review of the literature to date regarding the proposition that multinational banks follow their clients abroad, otherwise called the defensive expansion hypothesis. Both theoretical and empirical issues relevant to the study of the defensive expansion hypothesis are canvassed. The paper concludes that the defensive expansion hypothesis is best modelled using firm level data, and that investment measures are a preferred proxy for following clients. Furthermore, studies considering the defensive expansion hypothesis should control for …