Revenue Diversification, Performance and Bank Risk: Evidence from Indonesia
This paper examines the effect of revenue diversification on bank performance and bank risk by studying 101 conventional commercial banks in Indonesia over the period of 2010-2014 resulting in 505 observations. By employing panel least square technique, our results show that revenue diversification...
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Negeri Semarang
2016-12-01
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| Series: | Jurnal Dinamika Manajemen |
| Subjects: | |
| Online Access: | https://journal.unnes.ac.id/nju/index.php/jdm/article/view/8198 |
| _version_ | 1818435100517335040 |
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| author | Mutiara Nur Hafidiyah Irwan Trinugroho |
| author_facet | Mutiara Nur Hafidiyah Irwan Trinugroho |
| author_sort | Mutiara Nur Hafidiyah |
| collection | DOAJ |
| description | This paper examines the effect of revenue diversification on bank performance and bank risk by studying 101 conventional commercial banks in Indonesia over the period of 2010-2014 resulting in 505 observations. By employing panel least square technique, our results show that revenue diversification negatively affects bank performance. Moreover, it is found that diversified banks are riskier than specialized banks. The risk is diminished when state-owned banks diversify their business. Joint venture banks are riskier than other banks when they engage in non-interest income activities. |
| first_indexed | 2024-12-14T16:47:31Z |
| format | Article |
| id | doaj.art-22e93e8370ec40e2817d3265f931815e |
| institution | Directory Open Access Journal |
| issn | 2086-0668 2337-5434 |
| language | English |
| last_indexed | 2024-12-14T16:47:31Z |
| publishDate | 2016-12-01 |
| publisher | Universitas Negeri Semarang |
| record_format | Article |
| series | Jurnal Dinamika Manajemen |
| spelling | doaj.art-22e93e8370ec40e2817d3265f931815e2022-12-21T22:54:08ZengUniversitas Negeri SemarangJurnal Dinamika Manajemen2086-06682337-54342016-12-017213914810.15294/jdm.v7i2.81985308Revenue Diversification, Performance and Bank Risk: Evidence from IndonesiaMutiara Nur Hafidiyah0Irwan Trinugroho1Faculty of Economics and Business, Universitas Sebelas Maret, IndonesiaFaculty of Economics and Business, Universitas Sebelas Maret, IndonesiaThis paper examines the effect of revenue diversification on bank performance and bank risk by studying 101 conventional commercial banks in Indonesia over the period of 2010-2014 resulting in 505 observations. By employing panel least square technique, our results show that revenue diversification negatively affects bank performance. Moreover, it is found that diversified banks are riskier than specialized banks. The risk is diminished when state-owned banks diversify their business. Joint venture banks are riskier than other banks when they engage in non-interest income activities.https://journal.unnes.ac.id/nju/index.php/jdm/article/view/8198revenue diversificationbank performancebank riskconventional bankindonesia |
| spellingShingle | Mutiara Nur Hafidiyah Irwan Trinugroho Revenue Diversification, Performance and Bank Risk: Evidence from Indonesia Jurnal Dinamika Manajemen revenue diversification bank performance bank risk conventional bank indonesia |
| title | Revenue Diversification, Performance and Bank Risk: Evidence from Indonesia |
| title_full | Revenue Diversification, Performance and Bank Risk: Evidence from Indonesia |
| title_fullStr | Revenue Diversification, Performance and Bank Risk: Evidence from Indonesia |
| title_full_unstemmed | Revenue Diversification, Performance and Bank Risk: Evidence from Indonesia |
| title_short | Revenue Diversification, Performance and Bank Risk: Evidence from Indonesia |
| title_sort | revenue diversification performance and bank risk evidence from indonesia |
| topic | revenue diversification bank performance bank risk conventional bank indonesia |
| url | https://journal.unnes.ac.id/nju/index.php/jdm/article/view/8198 |
| work_keys_str_mv | AT mutiaranurhafidiyah revenuediversificationperformanceandbankriskevidencefromindonesia AT irwantrinugroho revenuediversificationperformanceandbankriskevidencefromindonesia |