Income diversification, bank stability and owners identity: international evidence from emerging economies
by Naima Lassoued; Houda Sassi
International Journal of Corporate Governance (IJCG), Vol. 8, No. 1, 2017

Abstract: This paper examines how ownership structure affects the relationship between income diversification and bank stability in emerging markets. Examining data on more than 171 banks from 13 Middle East and North Africa countries examined over the 2006-2012 period, the impact of foreign and state ownership on income diversification and bank stability is jointly studied by a 3SLS model. The main finding is that diversification, across interest and non-interest activities and non-traditional banking activities, increases bank stability. State-owned banks seem to take more risk by diversifying less their income. Inversely, foreign ownership decreases risk by diversifying their income. The findings have significant strategic implications for bank managers, regulators and investors who share a common interest in boosting bank stability.

Online publication date: Mon, 17-Jul-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Corporate Governance (IJCG):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com