Product Mix and Earnings Volatility at Banks: Evidence from a Degree of Total Leverage Model

• Main Authors: Yu-ching Chen, 陳鈺清
• Other Authors: Andy Chien
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/73262632985991572288

碩士 === 國立高雄第一科技大學 === 金融營運所 === 92 === This paper constructs a degree-of-total-leverage framework to test whether and how shifts in product mix affect earnings volatility at 32 banks in Taiwan between the third quarter, 1997 and the third quarter, 2003.After empirical analysis, the paper ends with some empirical findings. 1.investment activities and fee-based activities reveal a positive and significant relationship with revenue volatility. 2.bank scale reveals a positive and significant relationship with revenue volatility. 3.investment activities reveal a positive and significant relationship with degree of total leverage. 4.investment activities reveal a positive and significant relationship with earnings volatility. 5.investment activities reveal a positive and significant relationship with ROA.