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 increasingly high, banks must diversify their business so that their income is not only obtained from interest income but also non-interest income. This research aims to determine how big the impact of income diversification is on bank performance and risk. In addition, bank policies and strategies in diversifying income will be different if the ownership structure is also different. This research provides empirical evidence that income diversification has been proven to improve performance and reduce bank risk. This research also provides evidence that ownership will have a different influence on the relationship between income diversification and bank performance and risk. The existence of family and government ownership in the bank ownership structure will reduce bank performance when diversifying income. Family and government ownership will also increase risk when banks diversify income.
Keywords: Bank income diversification, performance, risk, family ownership, government ownership
