How does the stock market value bank diversification? Evidence from Vietnam

Xuan Vinh Vo

Finance Research Letters, 2017, vol. 22, issue C, 101-104

Abstract: Even though commercial banks have gradually followed the diversification strategy and deeply penetrated into non-traditional businesses for further income sources, studies on potential diversification benefits provide mixed results. This paper investigates how stock market values bank diversification using a data set of Vietnamese listed banks for the period 2006–2014. Overall, we find a negative relationship between bank diversification and stock market valuation. This implies investor preference for banks focusing on traditional activities.

Keywords: Bank diversification; Valuation; Vietnam (search for similar items in EconPapers)
JEL-codes: G20 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:22:y:2017:i:c:p:101-104

DOI: 10.1016/j.frl.2017.06.005

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