Bank presence in firm equity: A diversification based approach |
| |
| Authors: | María Victoria Ruiz-Mallorquí Inmaculada Aguiar-Díaz Diego R Medina-Muñoz |
| |
| Institution: | 1. Department of Finance and Accounting , University of Las Palmas de Gran Canaria , Spain;2. Department of Economics and Management , University of Las Palmas de Gran Canaria , Spain;3. University of Las Palmas de Gran Canaria , Campus de Tafira, Edif. Departamental de Empresariales, Módulo C-3.04, 35017, Las Palmas de G.C., Canary Islands, Spain E-mail: dmedina@dede.ulpgc.es |
| |
| Abstract: | This study analyses the possible reasons for banks deciding to invest in firm equity, based on the fundamentals of the strategic diversification literature. Those fundamentals suggest that it may be in response to the negative evolution of other aspects of banking business, namely, credit business, fixed interest business and services, as well as the bank's level of efficiency. The results confirm the hypotheses that the decision to hold equity in other firms is related to the evolution of the bank's other businesses. However, the results for savings banks differed from those for banks. |
| |
| Keywords: | |
|
|
