Hasan, Iftekhar; Saunders, Anthony; Acharya, Viral V. - Bank for International Settlements (BIS) - 2002
We study empirically the effect of focus (specialization) vs. diversification on the return and the risk of banks using data from 105 Italian banks over the period 1993-1999. Specifically, we analyze the tradeoffs between (loan portfolio) focus and diversification using a unique data set that is...