| Summary: | 碩士 === 國立高雄大學 === 經營管理研究所 === 98 === The objective of this study is to constructs the dimension of bank’s diversification according to two different aspects. One is in terms of the sources of the bank’s revenues and another is in terms of bank’s assets. First of all, this study investigates the impact of bank diversification on its performance. Second, under the conditions of bank size and its corporate governance, the influence of bank diversification on its performance is also examined.
Because there is no consensus of the effect of bank diversification on its performance, an alternative approach, Panel Smooth Transition Regression model (PSTR) proposed by González et al. (2005), is employed to test whether the nonlinearity relationship between bank diversification and performance exist. Annual data of Taiwan Commercial Banks and Business Bank from 1999 to 2009 are used in this study. Diversification index, bank size and insider ownership are regarded as a threshold variable. The results show that non-linear relationship between bank diversification and its performance does exist. The threshold values of diversification index, bank size and insider ownership are identified in this study.
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