An Empirical Study On The Impact Of Commercial Banks' Degree Of Internationalization On Their Business Performance

In the post-financial-crisis era,some commercial banks in the developed countries take place “reverse internationalization” because of the need of “deleveraging”,China's commercial banks seize the opportunity to develop rapidly,investing in the overseas institutions through mergers and acquisitions and greenfield investment,and accelerate the process of “ Going Out ” strategy.Under the background of financial globalization,whether the commercial bank internationalization development is to improve the business performance and what's the quantitative relationship between them,both questions are need to pay attention to formulating the internationalization development strategy for all commercial banks.In academic circles,there are many achievements in the theory of “internationalization degree and performance” of enterprises,the relationship includes a positive correlation,negative correlation,U-shaped,inverted U-type,S-type,M-type,and so on.Commercial banks as a special enterprise of running money fund,it needs to be further investigated whether the “degree of internationalizationperformance” relationship theory applies to the banking industry.This paper makes a theoretical study on the relationship between internationalization of commercial banks,bank performance and “degree of internationalization-performance”,and analyzes the status quo of China's commercial banks internationalization and bank performance.This paper Selects the relevant sample bank as the research object,using the super-efficiency DEA model to measure the efficiency value of commercial bank during 2006-2015 and makes a comparative analysis.Then,the paper constructs the multi-dimensional index measurement system of the internationalization degree of commercial banks,and measures the degree of internationalization of the sample commercial banks.Finally,the applicability of the relationship theory of “degree of internationalization-performance” of enterprises in commercial banks is studied by using panel data.The following conclusions were obtained through the study:1.At the present stage,the degree of internationalization of China commercial banks is generally lower and still at primary stage.The highest degree of internationalization of commercial bank is Bank of China,the internationalization of the banks has been developing In the growing trend and commercial banks accelerate the internationalization process of.2.The efficiency value of commercial banks in our country shows upward trend.By the end of the 2016,the ranking of the efficiency value of our commercial banks is: Joint-stock bank > Large commercial bank > City Commercial Bank;The top three are,China Merchants Bank Co.,Ltd.,Ping An Bank Co.,Ltd.,China Minsheng Banking Corp.,Ltd..The efficiency value of commercial banks that have been internationalized for development is higher than that of non-internationalized development banks.3.The “degree of internationalization-performance” relationship of our commercial banks is inverted U-shaped curve,which conforms to the initial stage and the first stage of the M-type relationship theory.When the internationalization degree of commercial banks is 17.31%,the operating performance reach the peak value.The tipping point of the initial stage and the first stage is 0.1731.It theoretically verifies that the “degree of internationalization-performance” relationship theory is applicable to the banking sector,it has certain guiding significance on the commercial banks of our country implementing “Going Out” internationalization strategy.Finally,according to the conclusion,the policy suggestions are put forward for the internationalization development of commercial banks at the national level and the bank level.