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Title: |
The Cost of Capital and the
Multi-nationalization of Japanese Banking |
| Author: |
Thornton, John |
| Author
Affiliation: |
U Wales and IMF |
| Source: |
International Economic Journal, Winter 1992, v. 6, no. 4, pp. 85-94 |
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Publication Date: |
Winter 1992 |
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Abstract: |
This study tests the hypothesis that a
bank's cost of capital, proxied by the dividend yield on its own stock,
is an important factor in the expansion of its overseas activities. The
results support the hypothesis. Additional factors identified as
important are the growth of Japanese direct foreign investment, which
proxies the expansion overseas of Japanese banks' domestic customers,
the yen exchange rate, and the deregulation of Japanese financial
markets with the consequent increase in the permissible activities of
Japanese banks abroad. |
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