Bank Diversification Effects on Bank Performance and Risk Profile of Bank in Indonesia
Development Research of Management
View Archive InfoField | Value | |
Title |
Bank Diversification Effects on Bank Performance and Risk Profile of Bank in Indonesia
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Creator |
Lukmawijaya, Anthony
Kim, Sung Suk |
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Subject |
Business
bank diversification; bank performance; risk profile Financial Institutions and Services; Banks |
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Description |
We investigate the relationship of Indonesian bank diversification towards its long term performance and risk profile with Indonesian bank data from 2009 to 2013. Non-interest income to total operating income of the bank measures its bank diversification level. Bank value is measured by the adjusted Tobin's Q and risk profile which is broken down into total risk, idiosyncratic risk, and systematic risk. The result shows that bank non-interest income diversification has a positive influence on its franchise value. There is, however, no strong evidence that diversification can lower a bank's risk profile.
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Publisher |
Universitas Pelita Harapan
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Contributor |
—
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Date |
2015-05-01
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article — |
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Format |
—
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Identifier |
https://ojs.uph.edu/index.php/DJM/article/view/158
10.19166/derema.v10i1.158 |
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Source |
DeReMa (Development Research of Management): Jurnal Manajemen; Vol 10, No 1 (2015): May; 74-84
2476-955X 1907-0853 |
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Language |
eng
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Relation |
https://ojs.uph.edu/index.php/DJM/article/view/158/102
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Coverage |
Indonesia
2009-2013 — |
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Rights |
Copyright (c) 2015 Anthony Lukmawijaya, Sung Suk Kim
https://creativecommons.org/licenses/by/4.0/ |
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