causal effects of those reforms on bank risk. Using a difference-in-difference approach, we show that banks’ financial … corporate governance. We also find that the effects of legal and governance reforms on bank risk may critically depend on the … progress of banking reforms. A further examination of alternative risk measures reveals that the increases in financial …

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 …