Risk Diversification by European Financial Conglomerates
نویسندگان
چکیده
منابع مشابه
On the Risk Situation of Financial Conglomerates: Does Diversification Matter?
In general, conglomeration leads to a diversification of risks (the diversification benefit) and to a decrease in shareholder value (the conglomerate discount). Diversification benefits in financial conglomerates are typically derived without accounting for reduced shareholder value, even though a comprehensive analysis requires competitive conditions within the conglomerate, i.e., shareholders...
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Firms pursue diversification for sake enhancing financial performance. Some theories state positive relationship between diversification and financial performance. However, there are some theories for negative relationship about the issue. The study has filled the gap that most studies done in developed countries and there are fewer studies in developing country like Malaysia. In this study, re...
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It has been pointed out in the macroeconomics and financial risk literature that risk-sharing by diversification in a financial network may increase the systemic risk. This means roughly that while individual agents in the network, for example banks, perceive their risk of default or insolvency decrease as a result of cooperation, the overall risk, that is, the risk that several agents may defa...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2005
ISSN: 1556-5068
DOI: 10.2139/ssrn.869944