 Does bank diversification heterogeneously affect performance and risk-taking in ASEAN emerging economies?Syed Moudud-Ul-Huq, Badar Nadeem Ashraf, Anupam Das Gupta and Changjun Zheng Research in International Business and Finance, 2018, vol. 46, issue C, 342-362 Abstract: In this study, we contribute to the ongoing debate on the costs and benefits of bank diversification. Diversification may benefit banks if diversified activities are inherently less risky or yield a high return, while it may hurt banks if diversified activities are more dangerous or possess low return. Using bank-level data from Indonesia, Malaysia, the Philippines, Thailand, and Vietnam over the period 2011–2015, we find that overall banks benefit from diversification; that is, the diversified banks have higher performance and lower risk. However, we further observe that diversified activities heterogeneously benefit banks. While the revenue diversification has a robust positive impact on bank performance and stability, the effect of assets diversification varies from country-to-country. Our results imply that banks can prioritize activities for diversification to maximize the benefits. Keywords: Income diversification; Assets diversification; Performance; Risk; Emerging economies; ASEAN (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:46:y:2018:i:c:p:342-362 DOI: 10.1016/j.ribaf.2018.04.007 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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