Bank presence in firm equity: A diversification based approach

This study analyses the possible reasons for banks deciding to invest in firm equity, based on the fundamentals of the strategic diversification literature. Those fundamentals suggest that it may be in response to the negative evolution of other aspects of banking business, namely, credit business,...

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Veröffentlicht in:The Service industries journal 2006-10, Vol.26 (7), p.801-817
Hauptverfasser: Victoria Ruiz-Mallorquí, María, Aguiar-Díaz, Inmaculada, Medina-Muñoz, Diego R.
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container_end_page 817
container_issue 7
container_start_page 801
container_title The Service industries journal
container_volume 26
creator Victoria Ruiz-Mallorquí, María
Aguiar-Díaz, Inmaculada
Medina-Muñoz, Diego R.
description This study analyses the possible reasons for banks deciding to invest in firm equity, based on the fundamentals of the strategic diversification literature. Those fundamentals suggest that it may be in response to the negative evolution of other aspects of banking business, namely, credit business, fixed interest business and services, as well as the bank's level of efficiency. The results confirm the hypotheses that the decision to hold equity in other firms is related to the evolution of the bank's other businesses. However, the results for savings banks differed from those for banks.
doi_str_mv 10.1080/02642060600898377
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subjects Banks
Diversification
Equity
Investment plans
Studies
title Bank presence in firm equity: A diversification based approach
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