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The Decision to Establish a Foreign Bank Branch or Subsidiary: An Application of Binary Classification Procedures

Published online by Cambridge University Press:  06 April 2009

Clifford A. Ball  and
Adrian E. Tschoegl
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Extract

This paper has two purposes. First, we model a key decision for international banks using data on the foreign direct investment (FDI) behavior of foreign banks in Japan and California. Second, we examine the utility of linear discriminant analysis and maximum likelihood logit analysis as statistical techniques for relating a qualitative dependent variable to a vector of independent variables.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 17 , Issue 3 , September 1982 , pp. 411 - 424
Copyright
Copyright © School of Business Administration, University of Washington 1982

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