|
|||||
|
|
Asymmetric effects of households’ financial participation on banking diversification |
|
| Institution: | 1. Department of International Business Studies, National Chi Nan University, Nantou County, Taiwan, ROC;2. National Sun Yat-sen University, Kaohsiung, Taiwan, ROC;1. 371 Lowell Ave, Newton, MA 02460, United States;2. Hanken School of Economics, P.O. Box 479, 00101 Helsinki, Finland;1. Universidad Diego Portales, Chile;2. Kennesaw State University, United States;3. Bowling Green State University, United States;1. Federal Reserve Bank of Cleveland, Ohio, United States;2. Oberlin College, Ohio, United States;1. Australian National University, Wharton Financial Institutions Center, Australia;2. Bilkent University, Turkey and MIT Golub Center for Finance and Policy, USA |
| Abstract: | This paper examines banks’ diversification–performance nexus from the perspective of demand, the magnitude of households’ financial participation, with bank data from 22 European countries over the period from 2002 to 2009. We argue that the magnitude of households’ financial participation develops asymmetric diversification effects on banks’ performance. The empirical investigation herein provides evidence for the asymmetric influence of households’ financial participation on the effect of banks’ income diversification on their performance. Our findings suggest that banks should take into account the deposit interest rates and the variety of households’ investment habits when they operate toward diversification. |
| Keywords: | Financial participation Income diversification Bank performance Financial investment rate Trading frequency |
| 本文献已被 ScienceDirect 等数据库收录！ | |