Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries
This study aims to analyze the effects of market power and type of ownership on bank’s income diversification in Indonesia, Malaysia, the Philippines, Thailand, and China. Banks diversifies their source of income to stabilize profitability level. Bank’s market power is a critical factor which affect...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Negeri Semarang
2018-06-01
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| Series: | Jurnal Dinamika Manajemen |
| Subjects: | |
| Online Access: | https://journal.unnes.ac.id/nju/index.php/jdm/article/view/14648 |
| _version_ | 1818884115515047936 |
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| author | Valentino Robertho Buddi Wibowo |
| author_facet | Valentino Robertho Buddi Wibowo |
| author_sort | Valentino Robertho |
| collection | DOAJ |
| description | This study aims to analyze the effects of market power and type of ownership on bank’s income diversification in Indonesia, Malaysia, the Philippines, Thailand, and China. Banks diversifies their source of income to stabilize profitability level. Bank’s market power is a critical factor which affect its income diversification efforts. This study uses Lerner Index as a proxy for banks’ market power. By using a sample of 80 banks in five countries from 2012 to 2016 and operating Fixed Effect Model and Generalized Least Square, the result shows that banks with greater market power earn more non-interest income, except in the Philippines. Also, government ownership is proven to heighten the relation between market power and income diversification, with consistent results shown in each subsamples. Foreign ownership also heighten the relation between market power and income diversification, except in Thailand. |
| first_indexed | 2024-12-19T15:44:25Z |
| format | Article |
| id | doaj.art-8759c1d7905940aca99963d51b9e7cd1 |
| institution | Directory Open Access Journal |
| issn | 2086-0668 2337-5434 |
| language | English |
| last_indexed | 2024-12-19T15:44:25Z |
| publishDate | 2018-06-01 |
| publisher | Universitas Negeri Semarang |
| record_format | Article |
| series | Jurnal Dinamika Manajemen |
| spelling | doaj.art-8759c1d7905940aca99963d51b9e7cd12022-12-21T20:15:22ZengUniversitas Negeri SemarangJurnal Dinamika Manajemen2086-06682337-54342018-06-0191122210.15294/jdm.v9i1.146487476Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian CountriesValentino Robertho0Buddi Wibowo1Indonesia UniversityIndonesia UniversityThis study aims to analyze the effects of market power and type of ownership on bank’s income diversification in Indonesia, Malaysia, the Philippines, Thailand, and China. Banks diversifies their source of income to stabilize profitability level. Bank’s market power is a critical factor which affect its income diversification efforts. This study uses Lerner Index as a proxy for banks’ market power. By using a sample of 80 banks in five countries from 2012 to 2016 and operating Fixed Effect Model and Generalized Least Square, the result shows that banks with greater market power earn more non-interest income, except in the Philippines. Also, government ownership is proven to heighten the relation between market power and income diversification, with consistent results shown in each subsamples. Foreign ownership also heighten the relation between market power and income diversification, except in Thailand.https://journal.unnes.ac.id/nju/index.php/jdm/article/view/14648income diversificationmarket powernon-interest incometypes of ownership. |
| spellingShingle | Valentino Robertho Buddi Wibowo Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries Jurnal Dinamika Manajemen income diversification market power non-interest income types of ownership. |
| title | Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries |
| title_full | Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries |
| title_fullStr | Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries |
| title_full_unstemmed | Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries |
| title_short | Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries |
| title_sort | market power types of ownership and bank income diversification cases of asian countries |
| topic | income diversification market power non-interest income types of ownership. |
| url | https://journal.unnes.ac.id/nju/index.php/jdm/article/view/14648 |
| work_keys_str_mv | AT valentinorobertho marketpowertypesofownershipandbankincomediversificationcasesofasiancountries AT buddiwibowo marketpowertypesofownershipandbankincomediversificationcasesofasiancountries |