We empirically test whether banks' ownership network affects the relationship between product diversification and … diseconomies of diversification vanish the farther is the bank in the pyramid so that the farthest banks enjoy economies of … diversification (higher profits, lower costs and lower risk). Further exploration shows that such economies are attributable to the …

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 …

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

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 …

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 …

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 …

period from 2002 to 2019. Our results show that funding and income (assets) diversification has a positive (detrimental …) effect on the cost efficiency of the banks, while funding (income) diversification has a significantly negative (positive …) effect on profit efficiency. Our findings reveal that during the global financial crisis asset diversification is not …

’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 …