INTERNATIONAL BANKING - A SPECIAL LOOK AT FOREIGN BANKS IN THE UNITED-STATES

The usefulness of profit maximization hypothesis in explaining the multinationalization of the industrial corporate entity has been validated time and again through various empirical tests. This study uses the profit maximization hypothesis as a basis for a model to explain the multinationalization of the banking firm. A testable equation is derived, and tests using OLS are conducted. Empirical results are presented that support the hypothesis. © 1979, Academy of International Business.