geographic complexity can engender explicit trade-offs between the agency problems that increase risk and the diversification … geographic scope tend to provide diversification gains and reduce idiosyncratic and liquidity risks while also increasing BHCs …

risk - the focus of this paper - is crucial. Our results show revenue diversification reduces insolvency risk in banks with … personal wealth. The link identified between ownership concentration and revenue diversification is a novel way of analyzing …

increase prevails through a second channel: an increase in risk shifting. (3) Risk shifting decreases with the diversification …

diversification on bank risk-taking. Our results show that the relation between portfolio diversification and bank risk-taking is both … time a specific channel through which financial development, in the form of bank shareholders' diversification, affects the …

This study examines the influence of US banks' revenue diversification on their profitability, equity capital, and … credit risk, by size. By a simple decomposition of Return On Capital (ROC) I show how popular revenue diversification … techniques. I find substantial differences between size groups concerning the impact of revenue diversification measures on …

’s asset. Diversification and leverage in turn determine both idiosyncratic and systemic insolvency risk. We first characterize … contract features both absolute and relative performance evaluation, and it pins down the optimal diversification and leverage … relies too much on relative performance evaluation, which induces an inefficiently high level of diversification, leverage …

This study examines the infuence of US banks' revenue diversification on profitability, equity capital, and credit risk … by size. By a simple decomposition of Return On Capital (ROC) I show how popular revenue diversification measures affect … diversification measures on profitability, equity capital, and credit risk both in comparative statics and dynamically along the …