• Abstract
  • Non-technical summary
  • 1 Introduction
  • 2 Literature review
  • 3 A model of multinational bank withdelegated foreign branch management
  • 3.1 Bank balance sheet and cash f lows
  • 3.2 Shareholder preferences
  • 3.3 Shareholder-manager interaction
  • 3.4 Optimal lending
  • 3.5 Discussion
  • 4 Empirical evidence on cross-borderlending contagion
  • 4.1 Data description
  • 4.2 Estimation results
  • 5 Conclusion
  • References
  • Appendix: Proof of proposition 2