Prior studies of the diversification-driven cost savings from the joint provision of credit and deposits in … microfinance usually ignore the multi-way heterogeneity across MFIs which vary substantially in size, business model, target … accommodating multiple heterogeneity, we show that the typical measurement of economies of diversification at the mean provides an …

This study explores the effect of income diversification on the profitability of microfinance institutions (MFIs) in … diversification has a negative effect on return on asset and return on equity, suggesting the preference for a focused strategy …

prevailing "modal bank" are better off compared with those pursuing generic diversification. Moreover, we find that early …

We investigate the impact of geographic diversification on the provision of credit during a financial bust. We find … geographic areas that contributed most to geographic diversification in the pre-crisis period. This mitigation effect was greater … rapid deterioration of the portfolio quality during the crisis period. Geographic diversification can contribute to …

corporate diversification strategy as an identification tool for organizational structure, we find that diversified firms have … effect of diversification on the cost of a bank loan is channeled primarily through coinsurance in investment opportunities … and cash flows and that the effect is nonlinear: as the extent of corporate diversification grows, the cost …

income diversification and market concentration are related to bank stability. Firstly, we document that bank stability is … positively related to revenue diversification, suggesting that banks are more stable when they are more engaged in non … concentration modifies the link between revenue diversification and bank stability. Specifically, it is shown that diversified banks …

This paper examines the impact of business diversification of banks on their risk, with efficiency taken into … 2000-2016, we find that increased business diversification exerts two competing effects on bank risk. The direct effect of … increased diversification bolsters the stability of banks, but it is offset by the indirect effect whereby lowered efficiency …

This paper examines the impact of business diversification of banks on their risk, with efficiency taken into … find that increased business diversification exerts two competing effects on bank risk, and overall reduces bank risk. The … direct effect of increased diversification bolsters the stability of banks, but this is offset partially by the indirect …

development that captures the overall structure of the financial sector and its degree of institutional diversification (ID). We … system structures tend to experience faster growth than countries with lower levels of institutional diversification. The ID …

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 …