per capita, GDP per capita growth and inflation. Finally, is the region fixed effects capturing region related factors not captured by country controls.<sup>6</sup> rr θθ

**Table 4: EMDE groups internationalization, bank performance, risk, efficiency and strategy**

**(September 2017)**

||(1)|(2)|(3)|(4)|(5)<br>Cost-to-|
|---|---|---|---|---|---|
|**Panel A**|ROAA|Market-to-book|NIM|NPL over Loans|income|
|Subsidiary assets over group assets|-0.020**|-0.426|-0.027**|0.056**|0.020|
||(0.009)|(0.536)|(0.011)|(0.024)|(0.128)|
|Observations|51|38|51|46|51|
|R-squared|0.538|0.670|0.921|0.462|0.372|
|High-income Subsidiary assets over|-0.003<br>|0.802<br>|0.008<br>|0.242<br>|-0.044<br>|
|group assets|(0.022)|(0.932)|(0.029)|(0.215)|(0.301)|
|Developing Subsidiary assets over|-0.022**|-0.571|-0.031***|0.047*|0.027|
|group assets|(0.009)|(0.512)|(0.011)|(0.027)|(0.130)|
|Observations|51|38|51|46|51|
|R-squared|0.548|0.687|0.923|0.510|0.372|
|Regional Subsidiary assets over|-0.022**|-0.761|-0.031***|0.048*|0.035|
|group assets|(0.009)|(0.503)|(0.010)|(0.027)|(0.128)|
|Non-regional Subsidiary assets over|-0.002|1.287*|0.009|0.148|-0.113|
|group assets|(0.016)|(0.748)|(0.023)|(0.136)|(0.275)|
|Observations|51|38|51|46|51|
|R-squared|0.553|0.719|0.924|0.482|0.376|
||(1)|(2)|(3)|(4)|(5)|
|**Panel B**|Deposits|Short-term funding|Equity|Market Equity|Liquidity|
|Subsidiary assets over group assets|-0.013|0.047|-0.034|-0.210***|0.021|
||(0.084)|(0.051)|(0.031)|(0.068)|(0.070)|
|Observations|51|51|51|38|51|
|R-squared|0.501|0.595|0.572|0.614|0.783|
|High-income Subsidiary assets over|-0.331*|0.340**|0.052|-0.089|0.089|
|group assets|(0.180)|(0.125)|(0.107)|(0.109)|(0.123)|
|Developing Subsidiary assets over|0.020|0.017|-0.042|-0.218***|0.014|
|group assets|(0.097)|(0.060)|(0.029)|(0.066)|(0.077)|
|Observations|51|51|51|38|51|
|R-squared|0.533|0.650|0.590|0.624|0.784|
|Regional Subsidiary assets over|0.013|0.026|-0.035|-0.234***|0.023|
|group assets|(0.095)|(0.058)|(0.032)|(0.069)|(0.074)|
|Non-regional Subsidiary assets over|-0.251*|0.238**|-0.021|-0.079|0.004|
|group assets|(0.145)|(0.090)|(0.079)|(0.094)|(0.113)|
|Observations<br>|51<br>|51<br>|51<br>|38<br>|51<br>|
|R-squared|0.526|0.628|0.573|0.632|0.783|
|<br>_Notes:_Each column in Panel A and B contains c|<br>oefficients fro|<br>the bank internationalizati|<br>on variables fro|<br>m three regressions (ba|<br>seline specification|
|<br>high-income vs. developing, and regional vs. no<br>(ln(assets), loans over assets, equity over asset<br>Panel A, column 5, does not include overhead o<br>and *** represent statistical significance at 10<br>parentheses.|<br>n-regional sub<br>s, overhead ove<br>ver assets and<br>%, 5%, and 1% t|<br>sidiaries specifications). All r<br>r assets, ln(real GDP per cap<br>Panel B, columns 3 and 4, d<br>wo-tailed level, respectively|<br>egressions inclu<br>ita), inflation, G<br>o not include eq<br>. Robust standa|<br>de bank- and country-le<br>DP per capita growth),<br>uity over assets as cont<br>rd errors for heterosced|,<br>vel control variables<br>and region dummies.<br>rol variables. *, **,<br>asticity appear in|

> 6 Summary statistics of all the variables used in the analysis is provided in Annex 3.

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