Access the full text.
Sign up today, get DeepDyve free for 14 days.
Christian Calmès, Raymond Théoret (2010)
The Impact of Off-Balance-Sheet Activities on Banks Returns: An Application of the ARCH-M to Canadian DataJournal of Banking and Finance, 34
Vincenzo Chiorazzo, C. Milani, Francesca Salvini (2008)
Income Diversification and Bank Performance: Evidence from Italian BanksJournal of Financial Services Research, 33
François-Éric Racicot, Raymond Théoret (2008)
On comparing hedge fund strategies using new Hausman-based estimatorsJournal of Derivatives & Hedge Funds, 14
Lazarus Angbazo (1997)
Commercial bank net interest margins, default risk, interest-rate risk, and off-balance sheet bankingJournal of Banking and Finance, 21
Rebecca Demsetz, Philip Strahan (1997)
Diversification, Size, and Risk at Bank Holding CompaniesJournal of Money, Credit and Banking, 29
A. Estrella, Beverly Hirtle, Jim Mahoney, Tony Rodrigues, João Santos
Mixing and Matching: Prospective Financial Sector Mergers and Market Valuation
R. Engle (1982)
Autoregressive conditional heteroscedasticity with estimates of the variance of United Kingdom inflationEconometrica, 50
R. Engle, Kenneth Kroner (1995)
Multivariate Simultaneous Generalized ARCHEconometric Theory, 11
J. Goddard, D. Mckillop, John Wilson (2008)
The diversification and financial performance of US credit unions.Journal of Banking and Finance, 32
J. Boyd, M. Gertler (1994)
Are Banks Dead? Or are the Reports Greatly Exaggerated?NBER Working Paper Series
Christian Calmès, Raymond Théoret (2014)
Is the Canadian Banking System Really 'Stronger' than the U.S. One?
K. Stiroh, Adrienne Rumble (2006)
The dark side of diversification: The case of US financial holding companiesJournal of Banking and Finance, 30
O. Jonghe (2009)
Back to the basics in banking? A micro-analysis of banking system stability. NBB Working Paper 167, June 2009
Christian Calmès, Raymond Théoret (2014)
Bank systemic risk and macroeconomic shocks: Canadian and U.S. evidenceJournal of Banking and Finance, 40
K. Stiroh (2002)
Diversification in Banking: Is Noninterest Income the Answer?Journal of Money, Credit, and Banking, 36
Christian Calmès, Raymond Théoret (2013)
Market-oriented banking, financial stability and macro-prudential indicators of leverage☆Journal of International Financial Markets, Institutions and Money, 27
A. Kukush (2011)
Measurement Error Models
Huberto Ennis (2004)
Some Recent Trends in Commercial BankingFederal Reserve Bank of Richmond Research Publications
Simon Kwan, Elizabeth Laderman (1999)
On the portfolio effects of financial convergence - a review of the literatureEconometric Reviews
Markus Schmid, I. Walter (2006)
Do Financial Conglomerates Create or Destroy Economic Value?Corporate Finance: Valuation
John Gallo, Vincent Apilado, J. Kolari (1996)
Commercial bank mutual fund activities: Implications for bank risk and profitabilityJournal of Banking and Finance, 20
M. Agostino, Maria Mazzuca (2009)
Why do banks securitize? Evidence from Italy, 9
L. Hansen (1982)
Large Sample Properties of Generalized Method of Moments EstimatorsEconometrica, 50
Daniel Nelson (1991)
CONDITIONAL HETEROSKEDASTICITY IN ASSET RETURNS: A NEW APPROACHEconometrica, 59
Arthur Lewbel (1997)
Constructing Instruments for Regressions with Measurement Error when no Additional Data are Available, with an Application to Patents and R&DEconometrica, 65
L. Lepetit, Emmanuelle Nys, Philippe Rous, Amine Tarazi (2008)
Bank Income Structure and Risk: An Empirical Analysis of European BanksJournal of Banking and Finance, 32
T. Bollerslev, R. Engle, J. Wooldridge (1988)
A Capital Asset Pricing Model with Time-Varying CovariancesJournal of Political Economy, 96
R. Rajan, R. Kroszner (1994)
Is the Glass-Steagall Act justified? A study of the U.S. experience with universal banking beforeThe American Economic Review, 84
T. Bollerslev (1986)
Generalized autoregressive conditional heteroskedasticityJournal of Econometrics, 31
Christian Calmès, Raymond Théoret (2012)
The Rise of Market-oriented Banking and the Hidden Benefits of DiversificationAESTIMATIO : the IEB International Journal of Finance
J. Meng, Gang Hu, Jushan Bai (2010)
OLIVE: A Simple Method for Estimating Betas When Factors Are Measured with ErrorCapital Markets: Asset Pricing & Valuation
François-Éric Racicot, Raymond Théoret (2012)
Optimally weighting higher-moment instruments to deal with measurement errors in financial return modelsApplied Financial Economics, 22
Mami Kikuchi, T. Asao, J. Tokumine, A. Lefor, Hisao Matsushima, Hideaki Andoh, Kazumi Tanaka, Masafumi Kanamoto, Yuki Ideno (2021)
A novel system for teaching the in-plane vascular access techniqueMedicine, 100
P. Lemieux (2011)
Somebody in Charge: A Solution to Recessions?
Purpose– The purpose of this paper is to analyse the link between product-mix and bank performance with a comprehensive look at the contribution of each component of banking activities. Design/methodology/approach– The generalized method of moments estimation approach the authors apply to the US and Canadian large data sets deals with the endogeneity issues related to banks’ decision to diversify in fee-based activities, and the authors also control the non-linearities (asymmetries) in the innovation with a complementary EGARCH procedure. Findings– The results suggests that the increasing involvement of banks in fee generating activities has a greater positive impact on US bank performance. On the one hand, US banks are more involved in fees related to traditional lending activities and securitization, which contributes to their higher mean return. On the other hand, Canadian banks focus more on investment banking activities, which makes their financial results more procyclical and volatile. Greater profitability notwithstanding, the authors also found that US bank non-interest income activities incorporate more credit risk, a type of risk obviously less diversifiable when credit shocks occur. Originality/value– The approach shows that the endogeneity problems related to the banks’ decision to diversify in non-traditional activities may be important. The multivariate GARCH approach the authors introduced strongly suggests that diversification gains fluctuate over the business cycle, and that the decision to diversify must be understood in a dynamic setting rather than in a static one.
Managerial Finance – Emerald Publishing
Published: Aug 10, 2015
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.