دانلود رایگان مقاله چگونگی گوناگونی بانک ارزش بازار سهام: شواهد از ویتنام

Abstract

Even though commercial banks have gradually followed the diversification strategy and deeply penetrated into non-traditional businesses for further income sources, studies on potential diversification benefits provide mixed results. This paper investigates how stock market values bank diversification using a data set of Vietnamese listed banks for the period 2006 - 2014. Overall, we find a negative relationship between bank diversification and stock market valuation. This implies investor preference for banks focusing on traditional activities.

4. Conclusion

Maintaining a sound and safe banking system is important for a well-functioning economy. Global banking system is now facing challenges from different fronts including new market players, new technologies and new regulations from the central banks since the recent GFC. These challenges translate into competition and innovation in the banking system. Given this context, the decision to follow an appropriate strategy is important for bank managers. Banks tend to response to these challenges by following a new business model. A remarkable response is the shift into new non-traditional banking activities for other nontraditional sources of income. However, the question of whether banks should follow diversification strategy remains open for further discussion in the current literature. More specially, even though there are a number of papers discussing the benefits and risks of bank diversification (Jouida et al. 2017; Sissy et al. 2017; Tan et al. 2017), there remains inconclusive evidence of risk and returns associated with bank diversification (Doumpos et al. 2016).