How to cite this paper
Hoang, C., Nguyen, L., Tran, M & Hoang, T. (2020). The impact of income diversification on liquidity creation and financial performance of Vietnamese Commercial Banks.Accounting, 6(4), 553-568.
Refrences
Abedifar, P., Molyneux, P., & Tarazi, A. (2018). Non-interest income and bank lending. Journal of Banking & Finance, 87, 411–426.
Abuzayed, B., Al-Fayoumi, N., & Molyneux, P. (2018). Diversification and bank stability in the GCC. Journal of International Financial Markets, Institutions and Money, 57, 17-43.
ADB (2015). Financial soundness indicators for financial sector stability in Vietnam. available at: www.adb.org/sites/default/files/publication/173663/fsi-viet-nam.pdf.
Allen, F., & Gale, D. (2004). Financial Intermediaries and Markets. Econometrica, 72, 1023– 1061.
Allen, F., & Santomero, A.M. (1998). The theory of financial intermediation. Journal of Banking and Finance, 21, 1461–1485.
Amidu, M., & Wolfe, S. (2013). Does bank competition and diversification lead to greater stability? Evidence from emerging markets. Review of Development Finance, 3(3), 152-166.
Baele, L., De Jonghe, O., & Vander Vennet, R. (2007). Does the stock market value bank diversification?. Journal of Banking & Finance, 31(7), 1999-2023.
Basuony, M.A., Mohamed, E.K.A. and Al-Baidhani, A.M. (2014). The effect of corporate governance on bank financial performance: evidence from the Arabian Peninsula. Corporate Ownership and Control, 11(2), 178-191.
Berger, A.N., Demsetz, R.S., & Strahan, P.E. (1999). The consolidation of the financial services industry: causes, consequences, and implications for the future. Journal of Banking & Finance, 23(2), 135-194.
Berger, A.N. & Bouwman, C.H. (2009). Bank Liquidity Creation. The Review of Financial Studies, 22(9), 3779-3837.
Berger, A. N., Bouwman, C.H.S., Kick, T., & Schaeck, K. (2016). Bank liquidity creation following regulatory interventions and capital support. Journal of Financial Intermediation, 26, 115-141.
Berger, A.N., Hasan, I., & Zhou, M. (2010). The effects of focus versus diversification on bank performance: evidence from Chinese banks. Journal of Banking & Finance, 34(7), 1417-1435.
Berger, A.N., & Bouwman, C. (2015). Bank liquidity creation and financial crises. Academic Press.
Berger, A.N., & Bouwman, C.H. (2017). Bank liquidity creation, monetary policy, and financial crises. Journal of Financial Stability, 30, 139-155.
Bhattacharya, S., & Thakor, A.V. (1993). Contemporary Banking Theory. Journal of Financial Intermediation, 3, 2–50.
Bliss, R.T., & Rosen, R.J. (2001). CEO compensation and bank mergers. Journal of Finance and Economics, 61, 107–138.
Bouwman, C.H.S., & Malmendier, U. (2015). Does a bank’s history affect its risk-taking?. American Economic Review, 105(5), 321-325.
Boyd, J.H., & Graham, S.L. (1986). Risk, regulation, and bank holding company expansion into nonbanking. Quarterly Review, 10(2), 2-17.
Bryant, J. (1980). A Model of Reserves, Bank Runs, and Deposit Insurance. Journal of Banking and Finance, 4(4), 335–44.
Chiorazzo, V., Milani, C., & Salvini, F. (2008). Income diversification and bank performance: evidence from Italian banks. Journal of Financial Services Research, 33, 181–203.
Demsetz, R.S., & Strahan, P.E. (1997). Diversification, size and risk at bank holding companies. Journal of Money, Credit and Banking, 29, 300–313.
DeYoung, R., & Roland, K.P. (2001). Product mix and earnings volatility at commercial banks: evidence from a degree of total leverage model. Journal of Financial Intermediation, 10(1), 54-84.
DeYoung, R., & Torna, G. (2013). Nontraditional banking activities and bank failures during the financial crisis. Journal of Financial Intermediation, 22(3), 397-421.
Diamond, D.W., & Philip, H.D. (1983). Bank runs, deposit insurance, and liquidity. Journal of Political Economy, 91, 401-419.
Distinguin, I., Roulet, C., & Tarazi, A. (2013). Bank regulatory capital and liquidity: Evidence from US and European publicly traded banks. Journal of Banking & Finance, 37(9), 3295-3317.
Do, T.K.H., Nguyen, T.M.N., & Le, H.T. (2017). Effects of the credit boom on the soundness of Vietnamese commercial banks. International Journal of Financial Research, 8(3), 57-73.
Doan, A.T., Lin, K.L., & Doong, S.C. (2018). What drives bank efficiency? The interaction of bank income diversification and ownership. International Review of Economics & Finance, 55, 203-219.
Drucker, S., & Puri, M. (2008). On loan sales, loan contracting, and lending relationships. The Review of Financial Studies, 22(7), 2835-2872.
Elsas, R., Hackethal, A., & Holzhäuser, M. (2010). The anatomy of bank diversification. Journal of Banking & Finance, 34(6), 1274-1287.
Francis, B.B., Hasan, I., Küllü, A.M., & Zhou, M. (2018). Should banks diversify or focus? Know thyself: The role of abilities. Economic Systems, 42(1), 106-118.
Fu, X.M., Lin, Y.R., & Molyneux, P. (2016). Bank capital and liquidity creation in Asia Pacific. Economic Inquiry, 54(2), 966-993.
Fungáčová, Z., & Weill, L. (2012). Bank liquidity creation in Russia. Eurasian Geography and Economics, 53(2), 285-299.
Goddard, J., McK, D., & John, O.S.W. (2008). The diversification and financial performance of US credit unions. Journal of Banking & Finance, 32, 1836-1849.
Harris, M., Kriebel, C.H., & Raviv, A. (1982). Asymmetric information, incentives and intrafirm resource allocation. Management Science, 28(6), 604-620.
Horváth, R., Seidler, J., & Weill, L. (2014). Bank capital and liquidity creation: Granger-causality evidence. Journal of Financial Services Research, 45(3), 341-361.
Horvath, R., Seidler, J., & Weill, L. (2016). How bank competition influences liquidity creation. Economic Modelling, 52, 155-161.
Hou, X., Li, S., Li, W., & Wang, Q. (2018). Bank diversification and liquidity creation: Panel Granger-causality evidence from China. Economic Modelling, 71, 87-98.
Kishan, R.P., & Opiela, T.P. (2000). Bank size, bank capital, and the bank lending channel. Journal of Money, Credit and Banking, 32(1), 121–141.
Klein, P.G. and Saidenberg, M.R. (2000). Diversification, organization, and efficiency: evidence from bank holding companies. Performance of Financial Institution, 153-173.
Köhler, M. (2014). Does non-interest income make banks more risky? Retail-versus investment-oriented. Review of Financial Economics, 23(4), 182-193.
Laeven, L., & Levine, R. (2007). Is there a diversification discount in financial conglomerates?. Journal of Financial Economics, 85(2), 331-367.
Lepetit, L., Nys, E., Rous, P., & Tarazi, A. (2008). Bank income structure and risk: an empirical analysis of European banks. Journal of Banking & Finance, 32(8), 1452-1467.
Le, T., (2019). The interrelationship between liquidity creation and bank capital in Vietnamese banking. Managerial Finance, 45(2), 331-347.
Li, L., & Zhang, Y. (2013). Are there diversification benefits of increasing noninterest income in the Chinese banking industry?. Journal of Empirical Finance, 24, 151–165.
Matz, L., & Neu, P. (2007). Liquidity Risk Measurement and Management: A Practitioner’s Guide to Global Best Practices. John Wiley & Sons, Singapore.
Meyer, M., Milgrom, P., & Roberts, J. (1992). Organizational prospects, influence costs, and ownership changes. Journal of Economics & Management Strategy, 1(1), 9-35.
Meslier, C., Tacneng, R., & Tarazi, A. (2014). Is bank income diversification beneficial? Evidence from an emerging economy. Journal of International Financial Markets, Institutions and Money, 31, 97-126.
Milbourn, T.T., Boot, A.W., & Thakor, A.V. (1999). Megamergers and expanded scope: Theories of bank size and activity diversity. Journal of Banking & Finance, 23(2-4), 195-214.
Miller, D.J. (2004). Firms’ technological resources and the performance effects of diversification: a longitudinal study. Strategic Management Journal, 25(11), 1097-1119.
Miller, D.J. (2006). Technological diversity, related diversification, and firm performance. Strategic Management Journal, 27(7), 601-619.
Nguyen, P.A., & Simioni, M. (2015). Productivity and efficiency of Vietnamese banking system: new evidence using Färe-Primont index analysis. Applied Economics, 47(41), 4395-4407.
Nguyen, M., Skully, M., & Perera, S. (2012). Market power, revenue diversification and bank stability: evidence from selected South Asian countries. Journal of International Financial Markets, Institutions and Money, 22(4), 897-912.
Pennathur, A.K., Subrahmanyam, V., & Vishwasrao, S. (2012). Income diversification and risk: does ownership matter? An empirical examination of Indian banks. Journal of Banking & Finance, 36(8), 2203-2215.
Rajan, R., Servaes, H., & Zingales, L. (2000). The cost of diversity: the diversification discount and inefficient investment. The Journal of Finance, 55(1), 35-80.
Rumelt, R.P. (1982). Diversification strategy and profitability. Strategic Management Journal, 3(4), 359-369.
Rauch, C., Steffen, S., Hackethal, A., & Tyrell, M. (2011). Determinants of Bank Liquidity Creation, Working Paper.
Repullo, R. (2004). Capital requirements, market power and risk-taking in banking. Journal of Financial Intermediation, 13, 156–182.
Santomero, A.M., & Eckles, D.L. (2000). The determinants of success in the new financial services environment: now that firms can do everything, what should they do and why should regulators care?. Economic Policy Review, 6(4), 22-29.
Sanya, S., & Wolfe, S. (2011). Can banks in emerging economies benefit from revenue diversification?. Journal of Financial Services Research, 40(1&2), 79-101.
Sissy, A.M., Amidu, M., & Abor, J.Y. (2017). The effects of revenue diversification and cross border banking on risk and return of banks in Africa. Research in International Business and Finance, 40, 1-18.
Song, F., & Thakor, A.V. (2007). Relationship banking, fragility, and the asset-liability matching problem. The Review of Financial Studies, 20(6), 2129-2177.
Stiroh, K. J. (2004). Diversification in banking: Is noninterest income the answer?. Journal of Money, Credit and Banking, 36(5), 853–882.
Stiroh, K., & Rumble, A. (2006). The dark side of diversification: the case of US financial holding companies. Journal of Banking and Finance, 30, 2131–2161.
Teece, D.J. (1982). Towards an economic theory of the multiproduct firm. Journal of Economic Behavior & Organization, 3(1), 39-63.
Vodová, P. (2013). Determinants of commercial bank liquidity in Hungary. Finansowy Kwartalnik Internetowy e-Finanse, 9(3), 64-71.
Williams, B. (2016). The impact of non-interest income on bank risk in Australia. Journal of Banking & Finance, 73, 16-37.
Wheelock, D.C., & Wilson, P.W. (2000). Why do banks disappear? The determinants of US bank failures and acquisitions. Review of Economics and Statistics, 82(1), 127-138.
Wong, W.P., & Deng, Q. (2016). Efficiency analysis of banks in ASEAN countries. Benchmarking: An International Journal, 23(7), 1798-1817.
Abuzayed, B., Al-Fayoumi, N., & Molyneux, P. (2018). Diversification and bank stability in the GCC. Journal of International Financial Markets, Institutions and Money, 57, 17-43.
ADB (2015). Financial soundness indicators for financial sector stability in Vietnam. available at: www.adb.org/sites/default/files/publication/173663/fsi-viet-nam.pdf.
Allen, F., & Gale, D. (2004). Financial Intermediaries and Markets. Econometrica, 72, 1023– 1061.
Allen, F., & Santomero, A.M. (1998). The theory of financial intermediation. Journal of Banking and Finance, 21, 1461–1485.
Amidu, M., & Wolfe, S. (2013). Does bank competition and diversification lead to greater stability? Evidence from emerging markets. Review of Development Finance, 3(3), 152-166.
Baele, L., De Jonghe, O., & Vander Vennet, R. (2007). Does the stock market value bank diversification?. Journal of Banking & Finance, 31(7), 1999-2023.
Basuony, M.A., Mohamed, E.K.A. and Al-Baidhani, A.M. (2014). The effect of corporate governance on bank financial performance: evidence from the Arabian Peninsula. Corporate Ownership and Control, 11(2), 178-191.
Berger, A.N., Demsetz, R.S., & Strahan, P.E. (1999). The consolidation of the financial services industry: causes, consequences, and implications for the future. Journal of Banking & Finance, 23(2), 135-194.
Berger, A.N. & Bouwman, C.H. (2009). Bank Liquidity Creation. The Review of Financial Studies, 22(9), 3779-3837.
Berger, A. N., Bouwman, C.H.S., Kick, T., & Schaeck, K. (2016). Bank liquidity creation following regulatory interventions and capital support. Journal of Financial Intermediation, 26, 115-141.
Berger, A.N., Hasan, I., & Zhou, M. (2010). The effects of focus versus diversification on bank performance: evidence from Chinese banks. Journal of Banking & Finance, 34(7), 1417-1435.
Berger, A.N., & Bouwman, C. (2015). Bank liquidity creation and financial crises. Academic Press.
Berger, A.N., & Bouwman, C.H. (2017). Bank liquidity creation, monetary policy, and financial crises. Journal of Financial Stability, 30, 139-155.
Bhattacharya, S., & Thakor, A.V. (1993). Contemporary Banking Theory. Journal of Financial Intermediation, 3, 2–50.
Bliss, R.T., & Rosen, R.J. (2001). CEO compensation and bank mergers. Journal of Finance and Economics, 61, 107–138.
Bouwman, C.H.S., & Malmendier, U. (2015). Does a bank’s history affect its risk-taking?. American Economic Review, 105(5), 321-325.
Boyd, J.H., & Graham, S.L. (1986). Risk, regulation, and bank holding company expansion into nonbanking. Quarterly Review, 10(2), 2-17.
Bryant, J. (1980). A Model of Reserves, Bank Runs, and Deposit Insurance. Journal of Banking and Finance, 4(4), 335–44.
Chiorazzo, V., Milani, C., & Salvini, F. (2008). Income diversification and bank performance: evidence from Italian banks. Journal of Financial Services Research, 33, 181–203.
Demsetz, R.S., & Strahan, P.E. (1997). Diversification, size and risk at bank holding companies. Journal of Money, Credit and Banking, 29, 300–313.
DeYoung, R., & Roland, K.P. (2001). Product mix and earnings volatility at commercial banks: evidence from a degree of total leverage model. Journal of Financial Intermediation, 10(1), 54-84.
DeYoung, R., & Torna, G. (2013). Nontraditional banking activities and bank failures during the financial crisis. Journal of Financial Intermediation, 22(3), 397-421.
Diamond, D.W., & Philip, H.D. (1983). Bank runs, deposit insurance, and liquidity. Journal of Political Economy, 91, 401-419.
Distinguin, I., Roulet, C., & Tarazi, A. (2013). Bank regulatory capital and liquidity: Evidence from US and European publicly traded banks. Journal of Banking & Finance, 37(9), 3295-3317.
Do, T.K.H., Nguyen, T.M.N., & Le, H.T. (2017). Effects of the credit boom on the soundness of Vietnamese commercial banks. International Journal of Financial Research, 8(3), 57-73.
Doan, A.T., Lin, K.L., & Doong, S.C. (2018). What drives bank efficiency? The interaction of bank income diversification and ownership. International Review of Economics & Finance, 55, 203-219.
Drucker, S., & Puri, M. (2008). On loan sales, loan contracting, and lending relationships. The Review of Financial Studies, 22(7), 2835-2872.
Elsas, R., Hackethal, A., & Holzhäuser, M. (2010). The anatomy of bank diversification. Journal of Banking & Finance, 34(6), 1274-1287.
Francis, B.B., Hasan, I., Küllü, A.M., & Zhou, M. (2018). Should banks diversify or focus? Know thyself: The role of abilities. Economic Systems, 42(1), 106-118.
Fu, X.M., Lin, Y.R., & Molyneux, P. (2016). Bank capital and liquidity creation in Asia Pacific. Economic Inquiry, 54(2), 966-993.
Fungáčová, Z., & Weill, L. (2012). Bank liquidity creation in Russia. Eurasian Geography and Economics, 53(2), 285-299.
Goddard, J., McK, D., & John, O.S.W. (2008). The diversification and financial performance of US credit unions. Journal of Banking & Finance, 32, 1836-1849.
Harris, M., Kriebel, C.H., & Raviv, A. (1982). Asymmetric information, incentives and intrafirm resource allocation. Management Science, 28(6), 604-620.
Horváth, R., Seidler, J., & Weill, L. (2014). Bank capital and liquidity creation: Granger-causality evidence. Journal of Financial Services Research, 45(3), 341-361.
Horvath, R., Seidler, J., & Weill, L. (2016). How bank competition influences liquidity creation. Economic Modelling, 52, 155-161.
Hou, X., Li, S., Li, W., & Wang, Q. (2018). Bank diversification and liquidity creation: Panel Granger-causality evidence from China. Economic Modelling, 71, 87-98.
Kishan, R.P., & Opiela, T.P. (2000). Bank size, bank capital, and the bank lending channel. Journal of Money, Credit and Banking, 32(1), 121–141.
Klein, P.G. and Saidenberg, M.R. (2000). Diversification, organization, and efficiency: evidence from bank holding companies. Performance of Financial Institution, 153-173.
Köhler, M. (2014). Does non-interest income make banks more risky? Retail-versus investment-oriented. Review of Financial Economics, 23(4), 182-193.
Laeven, L., & Levine, R. (2007). Is there a diversification discount in financial conglomerates?. Journal of Financial Economics, 85(2), 331-367.
Lepetit, L., Nys, E., Rous, P., & Tarazi, A. (2008). Bank income structure and risk: an empirical analysis of European banks. Journal of Banking & Finance, 32(8), 1452-1467.
Le, T., (2019). The interrelationship between liquidity creation and bank capital in Vietnamese banking. Managerial Finance, 45(2), 331-347.
Li, L., & Zhang, Y. (2013). Are there diversification benefits of increasing noninterest income in the Chinese banking industry?. Journal of Empirical Finance, 24, 151–165.
Matz, L., & Neu, P. (2007). Liquidity Risk Measurement and Management: A Practitioner’s Guide to Global Best Practices. John Wiley & Sons, Singapore.
Meyer, M., Milgrom, P., & Roberts, J. (1992). Organizational prospects, influence costs, and ownership changes. Journal of Economics & Management Strategy, 1(1), 9-35.
Meslier, C., Tacneng, R., & Tarazi, A. (2014). Is bank income diversification beneficial? Evidence from an emerging economy. Journal of International Financial Markets, Institutions and Money, 31, 97-126.
Milbourn, T.T., Boot, A.W., & Thakor, A.V. (1999). Megamergers and expanded scope: Theories of bank size and activity diversity. Journal of Banking & Finance, 23(2-4), 195-214.
Miller, D.J. (2004). Firms’ technological resources and the performance effects of diversification: a longitudinal study. Strategic Management Journal, 25(11), 1097-1119.
Miller, D.J. (2006). Technological diversity, related diversification, and firm performance. Strategic Management Journal, 27(7), 601-619.
Nguyen, P.A., & Simioni, M. (2015). Productivity and efficiency of Vietnamese banking system: new evidence using Färe-Primont index analysis. Applied Economics, 47(41), 4395-4407.
Nguyen, M., Skully, M., & Perera, S. (2012). Market power, revenue diversification and bank stability: evidence from selected South Asian countries. Journal of International Financial Markets, Institutions and Money, 22(4), 897-912.
Pennathur, A.K., Subrahmanyam, V., & Vishwasrao, S. (2012). Income diversification and risk: does ownership matter? An empirical examination of Indian banks. Journal of Banking & Finance, 36(8), 2203-2215.
Rajan, R., Servaes, H., & Zingales, L. (2000). The cost of diversity: the diversification discount and inefficient investment. The Journal of Finance, 55(1), 35-80.
Rumelt, R.P. (1982). Diversification strategy and profitability. Strategic Management Journal, 3(4), 359-369.
Rauch, C., Steffen, S., Hackethal, A., & Tyrell, M. (2011). Determinants of Bank Liquidity Creation, Working Paper.
Repullo, R. (2004). Capital requirements, market power and risk-taking in banking. Journal of Financial Intermediation, 13, 156–182.
Santomero, A.M., & Eckles, D.L. (2000). The determinants of success in the new financial services environment: now that firms can do everything, what should they do and why should regulators care?. Economic Policy Review, 6(4), 22-29.
Sanya, S., & Wolfe, S. (2011). Can banks in emerging economies benefit from revenue diversification?. Journal of Financial Services Research, 40(1&2), 79-101.
Sissy, A.M., Amidu, M., & Abor, J.Y. (2017). The effects of revenue diversification and cross border banking on risk and return of banks in Africa. Research in International Business and Finance, 40, 1-18.
Song, F., & Thakor, A.V. (2007). Relationship banking, fragility, and the asset-liability matching problem. The Review of Financial Studies, 20(6), 2129-2177.
Stiroh, K. J. (2004). Diversification in banking: Is noninterest income the answer?. Journal of Money, Credit and Banking, 36(5), 853–882.
Stiroh, K., & Rumble, A. (2006). The dark side of diversification: the case of US financial holding companies. Journal of Banking and Finance, 30, 2131–2161.
Teece, D.J. (1982). Towards an economic theory of the multiproduct firm. Journal of Economic Behavior & Organization, 3(1), 39-63.
Vodová, P. (2013). Determinants of commercial bank liquidity in Hungary. Finansowy Kwartalnik Internetowy e-Finanse, 9(3), 64-71.
Williams, B. (2016). The impact of non-interest income on bank risk in Australia. Journal of Banking & Finance, 73, 16-37.
Wheelock, D.C., & Wilson, P.W. (2000). Why do banks disappear? The determinants of US bank failures and acquisitions. Review of Economics and Statistics, 82(1), 127-138.
Wong, W.P., & Deng, Q. (2016). Efficiency analysis of banks in ASEAN countries. Benchmarking: An International Journal, 23(7), 1798-1817.