The Influence Of Liability Of Foreignness On Overseas Performance Of Commercial Banks In China

In recent years,the overseas expansion and internationalization of commercial Banks have become the focus of international market.However,due to the risk and complexity of its own operation,and the lack of knowledge and talent experience in the host country,it is not very smooth for commercial Banks in China to develop overseas.For commercial Banks to speed up the internationalization and rapidly integrated into the world market environment,can be in the host countries set up branches or take the way of mergers and acquisitions to enter other countries,but unlike implementation strategy in the domestic market,use this two ways to enter will make our country commercial bank is facing "Liability of Foreignness",that is due to changes in the international environment and the institutional environment and the need to pay a higher cost for the host country social support and recognition.Liability of Foreignness the advent of commercial Banks in China face including the host country and home country brought by cultural differences,different legal norm system formed by the distance and the space distance of the location selection and communication cost.Therefore,in the process of internationalization,commercial Banks will show worse performance due to excessive legal disputes and excessive market withdrawal rate.Therefore,commercial Banks in the process of overseas expansion should be how to deal with and overcome the Liability of Foreignness,to build a good international strategic framework,this is the trend of the development of the banking internationalization is also our country commercial bank must focus on the problem.In this paper,we understand the relevant definitions and concepts,and comprehensively discuss the existing literature research.Through the present situation of study of the internationalization of Chinese Banks,then explore the transnational operation in our country banking industry has obtained achievement and face all kinds of problems,found that although China's banking industry overseas development is swift and violent,but international business level there is still a big gap compared with developed countries in the world,in order to further study the cause of development of China's Banks have been at a disadvantage,this paper made anempirical analysis: select the internationalization of nine more mature Chinese Banks as according to the sample,the entry mode,outsiders disadvantage factors,and explore the performance status of the bank.This article in view of the banking internationalization process,the choice of entry mode and the outsiders disadvantage to the impact of multinational bank performance,put forward four kinds of assumptions,then by using Stata software linear regression analysis,hypothesis of four conditions are verified,and the results found that in addition to the entry mode adjustment effect was not able to take a test,all the rest.Outsiders disadvantage is there for a commercial bank's overseas expansion effect,especially in the regulation distance and cognitive distance significantly,in mergers and acquisitions mode into at the same time,the relatively new face less outsiders disadvantage influence,in developing countries to invest in overseas performance will be better than that of developed countries.Due to the industrial and commercial bank of fast development in recent years,the internationalization level is higher,so at the end of the paper the industrial and commercial bank of overseas expansion and case analysis,through four specific to case comprehensively discusses the industrial and commercial bank face outsiders disadvantage and is affected by the performance after completing the whole banking industry to the comprehensive analysis of cases,makes research more full.According to the existing conclusion put forward policy recommendations that our country commercial bank should be given priority to with new investment,mergers and acquisitions to mergers and acquisitions to enter the expansion of the auxiliary model,at the same time,which is based on developing countries and emerging markets,pushed forward the European and American developed country market layout,finally implement localization strategy,strengthen the construction of talent team.At the end of the paper,three suggestions are put forward for the development status and investment status of producer services in China.