Abstract

http://ssrn.com/abstract=1013430
 
 

References (46)



 
 

Citations (3)



 


 



Diversification, Bank Risk and Performance: A Cross-Country Comparison


Jarrett Emory Kotrozo


California State University, Stanislaus

Sungho Choi


Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology

October 2006


Abstract:     
The purpose of this paper is to continue the discussion regarding the diversification of both banking activities and geographical diversification as it relates to performance and risk. Herfindahl indices are used to measure diversification and a number of risk and performance measures are tested including Tobin's q, annualized stock returns and total risk. The results suggest the type of diversification can have varying impacts on both performance and risk. Specifically, banks focused in their revenue activities have higher levels of q than those diversifying their activities. Banks which are more geographically focused, however, have lower annualized stock returns. Banks with an activity focus or those who are geographically diversified also experience higher relative levels of risk. These results have potential implications for bank managers, shareholders and monitors/regulators.

Number of Pages in PDF File: 52

Keywords: Diversification, Performance, Risk, Herfindahl Index

JEL Classification: G21

working papers series





Download This Paper

Date posted: September 17, 2007  

Suggested Citation

Kotrozo, Jarrett Emory and Choi, Sungho, Diversification, Bank Risk and Performance: A Cross-Country Comparison (October 2006). Available at SSRN: http://ssrn.com/abstract=1013430 or http://dx.doi.org/10.2139/ssrn.1013430

Contact Information

Jarrett Emory Kotrozo (Contact Author)
California State University, Stanislaus ( email )
Turlock, CA 95382
United States
209-667-3856 (Phone)
Sungho Choi
Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology ( email )
110 8th St
Troy, NY 12180
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,595
Downloads: 505
Download Rank: 31,274
References:  46
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.296 seconds