Effects of foreign capital entry on the Macedonian banking industry: Two-edged sword
Filip Fidanoski, Bruno S. Sergi, Kiril Simeonovski, Vladimir Naumovski, Igor Sazdovski
University of New South Wales, Australia, email@example.com or firstname.lastname@example.org
University of Messina and Harvard University, Italy and USA, email@example.com or firstname.lastname@example.org
Ministry of Finance, Republic of Macedonia, email@example.com
University American College Skopje, Republic of Macedonia, firstname.lastname@example.org or email@example.com
Independent Researcher, Republic of Macedonia, firstname.lastname@example.org
In this paper we investigate the effects of foreign capital entry on bank performance in the Republic of Macedonia for the 2004-2012 period. We develop a theoretical model of foreign bank and foreign capital entry, followed with an empirical model in which we use the return on average assets (ROAA), the net-interest margin (NIM) and the overhead ratio as dependent variables, and the foreign capital factors combined with other control variables on the side of independent variables. The estimation results from the panel regression analysis indicate to a positive effect on the return on average assets (ROAA)and negative implications on the net- interest margin (NIM) and the overhead ratio.
Fidanoski, F., Sergi, B. S., Simeonovski, K., Naumovski, V. and Sazdovski, I. (2018). Effects of foreign capital entry on the Macedonian banking industry: Two-edged sword. In B. S. Sergi, F. Fidanoski, M. Zioło and V. Naumovski (Eds.). Regaining global stability after the financial crisis (Forthcoming). IGI Global.
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