 Performance and Shareholder WealthAlfred Slager Chapter 7 in The Internationalization of Banks, 2006, pp 157-187 from Palgrave Macmillan Abstract: Abstract This chapter investigates the relationship between shareholder return as a performance measure of banks and the DOI. Through internationalization, a bank might aim to improve its profitability, or realize more stable profitability through geographical diversification. The goal of this chapter is to determine if international activities have delivered a better performance than home country activities, and what relationships exist between performance measures of banks and DOI. Also, internationalization strategies should improve shareholder return as a performance measure. We establish a theoretical link between internationalization and shareholder return. Discussing these models in more detail, we find that either profitability growth or the reduction of the risk premium through geographical diversification should improve shareholder return. We evaluate the following performance measures: foreign versus domestic profitability; the relationship between internationalization and total profitability; geographical diversification advantages; internationalization and shareholder performance. Keywords: Total Asset; Total Return; Earning Surprise; Shareholder Wealth; Dividend Growth (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-0-230-62504-4_7 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan |
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