The large presence of global banks in Hong Kong offers a well suited empirical setting to study the capital management of foreign bank subsidiaries from a host country perspective. Specifically, this paper uses the trade-off theory of leverage to investigate whether the leverage dynamics of...

The complex nature of an overall banking group could potentially affect the riskiness of their affiliates through various channels, such as agency costs and diversification gains. This paper empirically investigates the effects of bank complexity of the global banks (in terms of their business...

Using a confidential dataset of foreign bank affiliates (FBA) in Hong Kong, this study finds evidence of an international transmission of prudential policies through banks' balance sheets from a host country perspective. Specifically, in response to tighter capital requirements in the home...