This paper investigates the effects of focus versus diversification on bank performance using data on Chinese banks … during the 1996-2006 period. We construct a new measure, economies of diversi-fication, and compare the results to those of … the more conventional focus indices, which are based on the sum of squares of shares in different products or regions …

This paper investigates the effects of focus versus diversification on bank performance using data on Chinese banks … during the 1996-2006 period. We construct a new measure, economies of diversification, and compare the results to those of … the more conventional focus indices, which are based on the sum of squares of shares in different products or regions …

diversification strategy. The marginal effects of focus indices (inverse measures of diversification) on performance are nonlinearly …Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the … recent financial crisis suggests that aggressive diversification strategies may have resulted in increased risk taking and …

the impact of M&As in European banking on profitability and efficiency, considering the breakdown between domestic and … diversify the sources of revenues was apparent. The cost and profit efficiency analysis based on 33 bank-to-bank mergers …, confirmed an improvement of cost efficiency and little improvement of profit efficiency for domestic transactions; whereas, no …

the impact of M&As in European banking on profitability and efficiency, considering the breakdown between domestic and … diversify the sources of revenues was apparent. The cost and profit efficiency analysis based on 33 bank-to-bank mergers …, confirmed an improvement of cost efficiency and little improvement of profit efficiency for domestic transactions; whereas, no …

Should banks be diversified or focused? Does diversification indeed lead to enhanced performance and, therefore … banks? profitability (ROA) and their portfolio diversification across different industries, broader economic sectors and … performance benefits associated with diversification since each type of diversification tends to reduce the banks? returns …

banks do not use diversification to operate at a constant level of risk-return efficiency, which implies that banks are not …Should banks be diversified or focused? Does diversification indeed lead to increased performance and therefore greater … between banks' profitability and their portfolio diversification across different industries, broader economic sectors and …

We study empirically the effect of focus (specialization) versus diversification on the return and the risk of banks …) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … expansion into newer or competitive industries. We find that industrial loan diversification reduces bank return while …

We study empirically the effect of focus (specialization) vs. diversification on the return and the risk of banks using …) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … expansion into newer or competitive industries. Our most important findings are that industrial loan diversification reduces …