This study examines the influence 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 both the ROC and risk-adjusted ROC. I find substantial...

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 measures affect both the ROC and risk-adjusted ROC. Based on...

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 both the ROC and risk-adjusted ROC. I find substantial...