Title page for etd-0602110-213926


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URN etd-0602110-213926
Author Siao-fan Li
Author's Email Address No Public.
Statistics This thesis had been viewed 5340 times. Download 8 times.
Department Finance
Year 2009
Semester 2
Degree Master
Type of Document
Language zh-TW.Big5 Chinese
Title The impact of operating activities diversification on the risk and performance of banks
Date of Defense 2010-05-31
Page Count 63
Keyword
  • Performance
  • Risk
  • Diversification
  • Non-interest income
  • Risk-adjusted Performance
  • Abstract As a result of the change of financial environment, the competition of domestic banking industry has become more intense, and its management has also met the challenge. In order to grow the operating activities, the bank of Taiwan become less dependent on traditional deposit and loan activities and then turns to develop the non-traditional activities. Therefore the non-interest income increases year by year and the development of operating activities diversification has become the main business model to promote the profit. Based on the above reason, the study use the market and account data of listed banks from 1991 to 2009 to investigate the impact of operating activities diversification on the risk and performance of banks.
    The result of the empirical analysis by the accounting data shows that the higher degree of operating activities diversification can reduce the bank risk, but the performance is not actually good. When the bank develops the operating activities diversification by increasing the non-interest income, the risk will be getting higher but the performance will be getting better. Therefore, the banking industry can’t put too much stress on the non-interest income. It should make the adequate decision between the risk and the performance. On the other hand, the result of the empirical analysis by the market data shows that the higher degree of operating activities diversification can increase the fluctuation of the stock price and when the non-interest income increases, Tobin's Q value gets higher. It demonstrated that the investors of the stock market anticipated the bank can improve the performance by increasing the non-interest income activities and gives recognition.
    Advisory Committee
  • Shyh-weir Tzang - chair
  • Chih-hsing Hung - co-chair
  • David S. Shyu - advisor
  • Files
  • etd-0602110-213926.pdf
  • indicate in-campus access in a year and off_campus not accessible
    Date of Submission 2010-06-02

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