. This paper investigates whether diversification influences banks' investment (credit) policy and profitability. Diversified … banks appear to benefit from “coinsurance,” supply more credit, and seem more profitable. However, diversification does not … contributes to the current debate on the optimal scope of bank activities, and highlights novel channels through which …

diversification index to account for complexity, we find robust evidence consistent with mispricing among the most diversified large …

This paper studies how a bank's diversification affects its own risk taking behavior and the risk taking of competing … diversification of banks changes a bank's lending behavior and market interest rates, which also has ramifications for nondiversified … strategies, I further pin down a causal relationship between the diversification of competitors and a bank's risk taking behavior …

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 …

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 …

prevailing "modal bank" are better off compared with those pursuing generic diversification. Moreover, we find that early …Using a novel database containing the time-series details of the organizational structure of individual bank holding …

This paper offers evidence that bank managers adjust key strategic variables following a risk and/or valuation signal …. Banks receive a risk signal when they have a substantially higher volatility compared to the best performing bank(s) with … similar business model characteristics, and a valuation signal when they are undervalued relative to the average bank with …

-deregulation diversification, which in earlier studies has been shown to lead to improved stock and earnings performance. Our findings have … their complexity by the Bank for International Settlements and the Federal Reserve. …