Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the … recent financial crisis suggests that aggressive diversification strategies may have resulted in increased risk taking and … diversification strategies and the risk-return tradeoff in banking. Our data set covers Russian banks during the 1999-2006 period and …

, such as vice presidents, increase default risk significantly. These findings suggest that high stakes in the bank induce … outside directors and upper-level management to control and reduce risk, while greater stakes for lower-level management seem …

-level management, such as vice presidents, increase default risk significantly. In contrast, shareholdings of outside directors and …

reduction in market discipline that might otherwise penalize banks for risk-taking behavior. Alternatively, market discipline …

his paper documents a positive relation between internationalization and bank risk. This is consistent with the … empirical dominance of the market risk hypothesis – whereby internationalization increases banks' risk due to market …-specific factors in foreign markets – over the diversification hypothesis – whereby internationalization allows banks to reduce risk …

We examine how bank efficiency during normal times affects survival, risk, and profitability during subsequent … times helps reduce bank failure probabilities, decrease risk, and enhance profitability during subsequent financial crises …

Theory suggests that government aid to banks may either reduce or increase systemic risk. We are the first to address … reduced contributions to systemic risk, particularly for larger and safer banks, and those in better local economies. This …