Title: The Effect of Income Diversification on Bank Performance and Risk with Ownership Structure as a Moderating Variable
Author: Annisa Shabrina
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
In this era of globalization, banking demands are increasing, requiring banks to diversify their businesses so that their revenues are derived not only from interest income but also from non-interest income. This study aims to determine the impact of revenue diversification on bank performance and risk. Furthermore, bank policies and strategies for diversifying revenue will differ depending on the ownership structure. This study provides empirical evidence that revenue diversification has been proven to improve bank performance and reduce risk. This study also provides evidence that ownership will have different effects on the relationship between revenue diversification and bank performance and risk. The presence of family and government ownership in a bank's ownership structure will reduce bank performance when diversifying revenue. Family and government ownership will also increase risk when banks diversify revenue.
Keywords: Bank income diversification, performance, risk, family ownership, government ownership