The Relationship between Performance of Diversification and Risk- Evidence from Taiwan’s Commercial Bank
碩士 === 淡江大學 === 財務金融學系碩士班 === 101 === As Taiwan has faced with a series of financial reforms, the banks began to develop more Non-interest service. Non-interest incomes have become a larger portion of the bank revenues. This paper examines the relationship between performance of diversification and...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2013
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| Online Access: | http://ndltd.ncl.edu.tw/handle/7zskvu |
| Summary: | 碩士 === 淡江大學 === 財務金融學系碩士班 === 101 === As Taiwan has faced with a series of financial reforms, the banks began to develop more Non-interest service. Non-interest incomes have become a larger portion of the bank revenues. This paper examines the relationship between performance of diversification and risk. Our study use Panel Data Regression Model to examine the Taiwan’s commercial bank from 2008 to 2011.Our sample contains 25 banks and 400 observations.
Our main finding are as follows: (i) Revenue diversification has negative relation to increase profitability and negative to reduce risk. The banks do not benefit from the Revenue diversification. Increasing in non-interest income may increase bankruptcy risk.(ii) There is not a significant difference between bank holding companies and non-bank holding companies. Although the banks which had established financial holding company can increase their management efficiency and have more resources than other banks which had not established financial holding company, FHCs expand non-interest activities will not improve the performance.(iii)The size of bank is the important effect to improve the bank performance. the banks with large size could have an ability to develop non-interest incomes and keep the better efficiency and create the advantage of scope.
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