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Income diversification and bank performance: evidence from malaysian banks

Using annual financial information from Malaysian banks over the period of 2005-2015, we study the diversification effect on bank's performance. Specifically, we test the link between non-interest income and risk-adjusted performance. Our fixed effect panel regression results show that income...

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Main Authors: Rayenda Khresna, Brahmana, Maria, Kontesa, Rachel Elfra, Gilbert
Format: Article
Language:English
Published: Economics Bulletin Community 2018
Subjects:
HD28 Management. Industrial Management
HG Finance
Online Access:http://ir.unimas.my/id/eprint/25336/3/Income.pdf
http://ir.unimas.my/id/eprint/25336/
https://www.researchgate.net/publication/324826997
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spelling my.unimas.ir.253362022-06-28T03:07:41Z http://ir.unimas.my/id/eprint/25336/ Income diversification and bank performance: evidence from malaysian banks Rayenda Khresna, Brahmana Maria, Kontesa Rachel Elfra, Gilbert HD28 Management. Industrial Management HG Finance Using annual financial information from Malaysian banks over the period of 2005-2015, we study the diversification effect on bank's performance. Specifically, we test the link between non-interest income and risk-adjusted performance. Our fixed effect panel regression results show that income diversification increases bank's performance confirming risk reduction hypothesis and resource-based view theory. In our view, the less integrated financial market in Malaysia gives advantage for Malaysian banks to achieve better diversification gains. Moreover, the surging of Islamic banking might play important role to the performance of income diversification. Further research is needed to explore further other possibilities that may explain this association. Economics Bulletin Community 2018 Article PeerReviewed text en http://ir.unimas.my/id/eprint/25336/3/Income.pdf Rayenda Khresna, Brahmana and Maria, Kontesa and Rachel Elfra, Gilbert (2018) Income diversification and bank performance: evidence from malaysian banks. Economics Bulletin, 38 (2). pp. 799-809. ISSN 1545-2921 https://www.researchgate.net/publication/324826997
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HD28 Management. Industrial Management
HG Finance
spellingShingle HD28 Management. Industrial Management
HG Finance
Rayenda Khresna, Brahmana
Maria, Kontesa
Rachel Elfra, Gilbert
Income diversification and bank performance: evidence from malaysian banks
description Using annual financial information from Malaysian banks over the period of 2005-2015, we study the diversification effect on bank's performance. Specifically, we test the link between non-interest income and risk-adjusted performance. Our fixed effect panel regression results show that income diversification increases bank's performance confirming risk reduction hypothesis and resource-based view theory. In our view, the less integrated financial market in Malaysia gives advantage for Malaysian banks to achieve better diversification gains. Moreover, the surging of Islamic banking might play important role to the performance of income diversification. Further research is needed to explore further other possibilities that may explain this association.
format Article
author Rayenda Khresna, Brahmana
Maria, Kontesa
Rachel Elfra, Gilbert
author_facet Rayenda Khresna, Brahmana
Maria, Kontesa
Rachel Elfra, Gilbert
author_sort Rayenda Khresna, Brahmana
title Income diversification and bank performance: evidence from malaysian banks
title_short Income diversification and bank performance: evidence from malaysian banks
title_full Income diversification and bank performance: evidence from malaysian banks
title_fullStr Income diversification and bank performance: evidence from malaysian banks
title_full_unstemmed Income diversification and bank performance: evidence from malaysian banks
title_sort income diversification and bank performance: evidence from malaysian banks
publisher Economics Bulletin Community
publishDate 2018
url http://ir.unimas.my/id/eprint/25336/3/Income.pdf
http://ir.unimas.my/id/eprint/25336/
https://www.researchgate.net/publication/324826997
_version_ 1738514622853414912
score 13.211869

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