Record Details

Bank Diversification Effects on Bank Performance and Risk Profile of Bank in Indonesia

Development Research of Management

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Field Value
 
Title Bank Diversification Effects on Bank Performance and Risk Profile of Bank in Indonesia
 
Creator Lukmawijaya, Anthony
Kim, Sung Suk
 
Subject Business
bank diversification; bank performance; risk profile
Financial Institutions and Services; Banks
 
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.
 
Publisher Universitas Pelita Harapan
 
Contributor
 
Date 2015-05-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article

 
Format
 
Identifier https://ojs.uph.edu/index.php/DJM/article/view/158
10.19166/derema.v10i1.158
 
Source DeReMa (Development Research of Management): Jurnal Manajemen; Vol 10, No 1 (2015): May; 74-84
2476-955X
1907-0853
 
Language eng
 
Relation https://ojs.uph.edu/index.php/DJM/article/view/158/102
 
Coverage Indonesia
2009-2013

 
Rights Copyright (c) 2015 Anthony Lukmawijaya, Sung Suk Kim
https://creativecommons.org/licenses/by/4.0/