Straight after a new CEO was assigned, Hong Kong and Shanghai Banking Corporation (HSBC) announced its exit from a number of markets including those that were considered to be high growth markets. The paper attempts to identify the key factors, which influence the exit decisions that are taken by multinational banks. The research is based on the analysis of HSBC’s publicly available financial documents, strategy releases and other world economic databases. The results of the study reveal two main factors that forced HSBC’s exit from Kazakh market. These findings can potentially be generalized to overall banking industry.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Theoretical background
- 3. Conceptual framework
- 4. Methodology
- 5. Results
- 6. Discussion, limitations and directions for further research
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the key factors influencing the exit decisions of multinational banks, using HSBC's withdrawal from Kazakhstan as a case study. The research investigates whether these decisions are driven by internal factors (strategic shifts or poor performance) or external factors (macroeconomic conditions and increased competition).
- Multinational bank exit decisions
- Factors influencing bank market exits (internal and external)
- The case of HSBC's withdrawal from Kazakhstan
- Impact of macroeconomic conditions on bank decisions
- Analysis of bank performance indicators and market share
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This chapter introduces the topic of multinational bank exits, highlighting the growth of international business operations and the role of global banking. It emphasizes the potential socioeconomic consequences of divestment in the banking industry and uses HSBC's 2011 exit from several markets, including Kazakhstan, as a case study. The chapter establishes the research question: "What are the key factors that make multinational banks exit markets?" and outlines the datasets used in the analysis, including HSBC's strategy presentation and financial statements of Kazakhstani banks.
2. Theoretical background: This chapter would delve into existing theories and literature on multinational firm exit decisions, particularly focusing on the banking sector. It would likely explore various theoretical frameworks that explain why firms choose to leave certain markets, potentially encompassing resource-based view, transaction cost economics, or institutional theory. The chapter would provide a solid foundation for understanding the complexities involved in international bank operations and the factors that can contribute to market exit decisions.
3. Conceptual framework: This section would likely present a visual model or a detailed explanation of the specific variables and relationships the author plans to investigate. It would connect the theoretical background with the specific research question, showing how the chosen theories will be applied to analyze HSBC's exit from Kazakhstan. This framework serves as a roadmap for the empirical analysis presented later in the study.
4. Methodology: This chapter would describe the research design and methods employed in the study. It would detail the data collection process, specifying the sources of data used (e.g., HSBC's financial documents, market reports, etc.) and the analytical techniques employed (e.g., statistical analysis, case study analysis, etc.). This section would provide crucial information for evaluating the rigor and validity of the research findings.
5. Results: This chapter would present the findings of the empirical analysis. It would likely contain quantitative and/or qualitative data illustrating the factors identified as influencing HSBC's decision to leave the Kazakhstani market. This presentation of results would form the basis for the discussion and conclusions presented in later chapters.
6. Discussion, limitations and directions for further research: This chapter would interpret the findings presented in the previous chapter, discussing their implications for understanding multinational bank exit decisions. It would critically evaluate the study's limitations, acknowledging any potential biases or constraints that might affect the generalizability of the findings. The chapter would conclude by suggesting directions for future research, identifying areas where further investigation could enhance our understanding of this complex phenomenon.
Schlüsselwörter (Keywords)
Market exit, de-internationalization, divestment, exit decision factors, divestiture in banking industry, multinational banks, HSBC, Kazakhstan, macroeconomic conditions, bank performance, competition, return on equity, cost efficiency.
Frequently Asked Questions: Analysis of Multinational Bank Exit Decisions
What is the main topic of this research paper?
The paper analyzes the key factors influencing the exit decisions of multinational banks, using HSBC's withdrawal from Kazakhstan as a case study. It investigates whether these decisions are driven by internal factors (strategic shifts or poor performance) or external factors (macroeconomic conditions and increased competition).
What are the key themes explored in the paper?
The key themes include multinational bank exit decisions, factors influencing bank market exits (both internal and external), the case study of HSBC's withdrawal from Kazakhstan, the impact of macroeconomic conditions on bank decisions, and the analysis of bank performance indicators and market share.
What is the structure of the paper?
The paper is structured into six chapters: 1. Introduction; 2. Theoretical background; 3. Conceptual framework; 4. Methodology; 5. Results; and 6. Discussion, limitations and directions for further research. It also includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What does the introduction chapter cover?
The introduction sets the stage by discussing multinational bank exits, the growth of international banking, and the potential socioeconomic consequences of divestment. It uses HSBC's 2011 exit from several markets, including Kazakhstan, as a case study and establishes the research question: "What are the key factors that make multinational banks exit markets?" It also outlines the datasets used.
What theoretical frameworks are considered in the paper?
The theoretical background chapter delves into existing theories and literature on multinational firm exit decisions, particularly in the banking sector. It explores frameworks such as resource-based view, transaction cost economics, and institutional theory to explain why firms leave markets.
How is the research question addressed?
The conceptual framework chapter connects the theoretical background with the research question, outlining the specific variables and relationships the author plans to investigate. The methodology chapter details the research design, data collection process (using sources like HSBC's financial documents and market reports), and analytical techniques (e.g., statistical analysis, case study analysis).
What are the key findings of the research?
The results chapter presents the findings of the empirical analysis, likely including quantitative and/or qualitative data illustrating the factors influencing HSBC's exit from Kazakhstan. The discussion chapter interprets these findings, discusses their implications, and acknowledges limitations.
What are the limitations and future research directions?
The final chapter critically evaluates the study's limitations and suggests directions for future research to enhance our understanding of multinational bank exit decisions.
What keywords are associated with this research?
Keywords include market exit, de-internationalization, divestment, exit decision factors, divestiture in banking industry, multinational banks, HSBC, Kazakhstan, macroeconomic conditions, bank performance, competition, return on equity, and cost efficiency.
- Quote paper
- Darkhan Shildebayev (Author), 2014, Exit Decision of Multinationational Banks. The Case of HSBC Kazakhstan, Munich, GRIN Verlag, https://www.grin.com/document/301406
