The Relationship and Causality Testing between Diversification, Risk and Financial Performance: Empirical Examiniation in Taiwan's Banking Industry
The objective of this study is to examine the portfolio theory that suggests that diversification can potentially reduce both the return variance and the probability of failure of a portfolio. The study aims to investigate the diversification measure by means of the Hershman-Herfindahl index proposed by Berry , and applies the 'diversification index' proposed by Demsetz and Strahan [2,3] by scaling systematic risk with stock return variance of individual banks. It is assumed that as banking...[Show more]
|Collections||ANU Research Publications|
|Source:||International Journal of Services Technology and Management|
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