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Full-Text Articles in Finance and Financial Management
Bank Risk And Return: The Impact Of Bank Non-Interest Income, Barry Williams, Laurie Prather
Bank Risk And Return: The Impact Of Bank Non-Interest Income, Barry Williams, Laurie Prather
Laurie Prather
Purpose – The purpose of this paper is to consider the impact on bank risk of portfolio diversification between traditional margin income and fee-based income for banks operating in Australia.Design/methodology/approach – Considering several performance variables, this analysis compares the benefits of diversification across different bank types relative to margin income and fee income. Further, regression analysis considers bank risk and revenue concentration.Findings – This paper documents that fee-based income is riskier than margin income but offers diversification benefits to bank shareholders. While improving bank risk-return trade-off, these benefits are of second order importance compared to the large negative impact of …
Bank Risk And Return: The Impact Of Bank Non-Interest Income, Barry Williams, Laurie Prather
Bank Risk And Return: The Impact Of Bank Non-Interest Income, Barry Williams, Laurie Prather
Barry Williams
Purpose – The purpose of this paper is to consider the impact on bank risk of portfolio diversification between traditional margin income and fee-based income for banks operating in Australia.Design/methodology/approach – Considering several performance variables, this analysis compares the benefits of diversification across different bank types relative to margin income and fee income. Further, regression analysis considers bank risk and revenue concentration.Findings – This paper documents that fee-based income is riskier than margin income but offers diversification benefits to bank shareholders. While improving bank risk-return trade-off, these benefits are of second order importance compared to the large negative impact of …
Foreign Bank Efficiency In Australia: What Makes A Difference?, Jan-Egbert Sturm, Barry Williams
Foreign Bank Efficiency In Australia: What Makes A Difference?, Jan-Egbert Sturm, Barry Williams
Barry Williams
Purpose – The purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign-owned banks operating in Australia. The relevance of both comparative advantage theory and new trade theory to multinational banking in Australia will be tested.
Design/methodology/approach – A three stage research method is employed. First, estimates of foreign bank efficiency are drawn from a larger sample of domestic and foreign banks in Australia. Efficiency is estimated using parametric distance functions, applying several different specifications of inputs and outputs. Second, factor analysis is used to estimate a series of common factors drawn from …
Fundamental Investment Research – Do Us Results Apply To Australian Investors?, Bruce Vanstone, Tobias Hahn, Gavin Finnie
Fundamental Investment Research – Do Us Results Apply To Australian Investors?, Bruce Vanstone, Tobias Hahn, Gavin Finnie
Tobias Hahn
For many investors, the financial crisis of 2008 and 2009 has sparked renewed interest in value-based investment approaches. There is much published research supporting the use of fundamental analysis for value-based investment, and much of this research comes from the US. In previous articles, we have shown that US based fundamental investment research does not translate well to the Australian market. In this paper, we show how to test a well documented US fundamental investment strategy and find that it also does not transfer well to our Australian market.