Income diversification and bank performance: evidence from malaysian banks

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

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Official URL: https://www.researchgate.net/publication/324826997

Abstract

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.

Item Type: Article
Uncontrolled Keywords: bank performance, Malaysian banks, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 20 Jun 2019 00:44
Last Modified: 28 Jun 2022 03:07
URI: http://ir.unimas.my/id/eprint/25336

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