The effects of activity and geographic diversification on performance: Evidence from French financial institutions |
| |
| Institution: | 1. ISG, Sousse University, Bp 763, 4000 Sousse, Tunisia;2. ISG, Tunis University, Bardo, 2000 Tunis, Tunisia;1. University of Ottawa, Canada;2. Royal Military College of Canada, Canada;3. Carleton University, Canada;1. University of Evry, France;2. ESSCA School of Management, France;1. University of Evry, 2, rue Facteur Cheval, 91025 Evry, France;2. ESSCA – School of Management, Strategy and Management, 55 quai Alphonse Le Gallo, 92513 Boulogne-Billancourt Cedex, France;3. University of Minho, Department of Economics and Economic Policies Research Unit (NIPE), Campus of Gualtar, 4710-057 Braga, Portugal;4. London School of Economics, LSE Alumni Association, Houghton Street, London WC2 2AE, United Kingdom;1. Department of Business and Economics, Ursinus College, 601 East Main Street, Collegeville, PA 19426, United States;2. Department of Economics, Fordham University, 113 West 60th Street, NY, NY 10023, United States;1. Department of Economics, University of Calgary, Calgary, Alberta T2N 1N4, Canada;2. Department of Economics and Finance, University of South Alabama, Mobile, AL 36688, United States |
| |
| Abstract: | Our paper studies the impact of activity and geographic diversification on financial institution's performance. These diversification strategies are complementary in generating performance and may provide important implications. Moreover, we investigate the interaction between these two strategies. Our dataset comprises 4532 years observations over the period of 2002 to 2012 and covers 412 French financial institutions. We find a negative relationship between diversification and performance. However, this relationship is significantly positive when institutions implement a dual diversification strategy. In this paper, we propose a classification of French financial institutions. For generalists’ banks and cooperative banks, we find similar results to those of the entire sample. Furthermore, for specialized financial institutions, the relationship is positive and significant. Our findings are robust to the potential endogeneity problem and to measures of diversification and performance. |
| |
| Keywords: | Geographic diversification Activity diversification Performance Financial institutions |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
