Size, Growth, and Transnationality Among the World's Largest Banks

Tschoegl, Adrian E.

doi:10.1086/296196

Cited by 117 publications

(69 citation statements)

References 15 publications

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“…Tschoegl (1983) identifies three testable propositions which derive from the LPE: first, growth rates are independent of firm size; second, above or below average growth for any individual firm does not tend to persist from one period to the next;…”

Section: Model and Testable Hypothesesmentioning

confidence: 99%

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Firm Growth and Liquidity Constraints: A Dynamic Analysis

2006

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Using a large unbalanced panel data set of Portuguese manufacturing firms surviving over the period from 1990 to 2001, the purpose of this paper is to examine whether liquidity constraints faced by business firms affect firm growth. We use a GMM-system to estimate a dynamic panel data model of firm growth tha t incorporates cash flow as a measure of liquidity constraints and persistence of growth. The model is estimated for all size classes, including micro firms. Our findings suggest that smaller and younger firms have higher growth-cash flow sensitivities tha n larger and more mature firms. This is consistent with the suggestion that financial constraints on firm growth may be relatively more severe for small and young firms. Finally, firms that were small and young and strongly liquidity-constrained at the beginning of the sample period exhibited more persistent growth than those that were large and old and weakly liquidity-constrained. These results have significant policy implications.

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Section: Model and Testable Hypothesesmentioning

confidence: 99%

“…Equations (2) and (3) permit direct tests of the first two of Tschoegl's (1983) three testable propositions: that growth rates are independent of firm size ( 0 1 = − β ), and that growth does not persist ( )…”

Section: Model and Testable Hypothesesmentioning

confidence: 99%

Firm Growth and Liquidity Constraints: A Dynamic Analysis

2006

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“…The size of the i-th bank at time step t is denoted S i (t) and corresponds to the total amount of deposit money _________________________ 1 Alhadeff and Alhadeff (1964), Rhoades and Yeats (1974), Yeats et al (1975), Tschoegl (1983, Wilson and Williams (2000), Ennis (2001), Goddard et al (2002), Goddard et al (2004), Janicki and Prescott (2006), Benito (2008).…”

Section: The Modelmentioning

confidence: 99%

“…The multiplicative growth process generates a lognormal size distribution. The validity of Gibrat's law is of major interest for the size distribution (Tschoegl 1983, Benito 2008. Moreover, during the last decades the banking industry has experienced significant changes.…”

Section: Introductionmentioning

confidence: 99%

Evolutionary Model of the Bank Size Distribution

Kaldasch

2014

Economics

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An evolutionary model of the bank size distribution is presented based on the exchange and creation of deposit money. In agreement with empirical results the derived size distribution is lognormal with a power law tail. The theory is based on the idea that the size distribution is the result of the competition between banks for permanent deposit money. The exchange of deposits causes a preferential growth of banks with a fitness that is determined by the competitive advantage to attract permanent deposits. While growth rate fluctuations are responsible for the lognormal part of the size distribution, treating the mean growth rate of banks as small, large banks benefit from economies of scale generating the Pareto tail. JEL G21 L11 E11

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“…First, a large size enables banks to translate their scale efficiencies to foreign markets at a relatively low cost and to compete with local institutions even after taking into account the extra costs faced by foreign competitors (Terrell (1979), Tschoegl (1983), and Sabi (1988). The importance of size depends heavily on the kind of activity developed by the foreign firm in the host market.…”

Section: Microeconomic/behavioural Frameworkmentioning

confidence: 99%

Determinants and Impact of Financial Sector FDI to Emerging Economies: A Home Country's Perspective

Garcı́a-Herrero

Navia

2003

SSRN Journal

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This paper reviews the theoretical literature explaining financial FDI, as well as the empirical results on the determinants of financial FDI and its potential effects for the home country. From this revision, we conclude that, at the present stage, the existing theoretical paradigms need to be adapted to explain the recent surge in international banks' local operations in emerging countries financial sectors. Macroeconomic and risk diversification theories would seem particularly well-suited to explain this reality. The empirical literature on financial FDI has concentrated on bank-specific factors and much less so on macroeconomic determinants, particularly push factors where generally only general FDI literature is available. The survey draws on this literature in those cases where no specific results for financial FDI exist. Finally, the effects of financial FDI on the home country are virtually unknown. The literature on general FDI has focused on employment, trade and investment effects, yet the consequences on the profitability and systemic risk of home's financial system remain a topic for debate.

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Size, Growth, and Transnationality Among the World's Largest Banks

Cited by 117 publications

References 15 publications

Firm Growth and Liquidity Constraints: A Dynamic Analysis

Firm Growth and Liquidity Constraints: A Dynamic Analysis

Evolutionary Model of the Bank Size Distribution

Determinants and Impact of Financial Sector FDI to Emerging Economies: A Home Country's Perspective

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