Earticle

초록

영어

Using bank accounting data for 22 countries in Asia over the period 1995-2009, this article is the first to apply the dynamic panel Generalized Method of Moments (GMM) technique to investigate the impacts of diversification on profitability and risk for 967 banks. We find that income diversification in Asian banks reduces risk, but does not increase profitability on a broad sample basis. When bank specialization and a country’s income level are considered, the results become complicated. Diversification decreases profitability as well as increases risk for savings banks. The impact is also different for commercial, cooperative, and investment banks either by increasing profitability or reducing risk. On the other hand, diversification increases risk for banks in high income countries, while increasing profitability or reducing risk for banks in middle and low income countries. Finally, our results further reveal that the persistence of risk is greatly affected by bank specialization and a country’s income level, as all risk variables present persistence from one year to the next. Our findings suggest that the type of bank specialization matters for the effect of diversifying revenue sources.

목차

Abstract
 1. Introduction
 2. Previous literature on diversified development
 3. Data and methodology
  3.1 Data
  3.2 Panel dynamic GMM approach
  3.3 Empirical model and variable definitions
 4. Empirical results
  4.1. Broad sample
  4.2. The effect of specialization difference
  4.3. The effect of income difference
  4.4. Combination of specialisation and income groups
  4.5. Implications
 5. Conclusions
 References
 Table

키워드

저자

• 한국재무학회

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330