Philippine universal bank's degree of product and revenue diversification: Determinants and effects on financial performance

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Ermia Flor Quitalig

Defense Panel Chair

Clive Manuel Wee Sit

Defense Panel Member

Ruben Carlo Asuncion
Dickson Lim

Abstract/Summary

As a conventional wisdom, diversification is a firm's strategy to gain higher profits and minimize exposure to risks. In this study, the degree of divestification of the universal banks operating locally will be analyzed in terms of their products and revenue, using the loan and deposit focus indices, and entropy measure of diversification, respectively. Using the random effects estimation technique, and as supported by the traditional banking portfolio theory, we take the universal banks' financial accounts from the Bangko Sentral ng Pilipinas, and simulate the determinants and effects of diversification on profitability. Through this, we hypothesize that the traditional banking and portfolio theory supports the positive and significant relationship between divestification and profitability in the Philippine universal banking industry.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21869

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

91, [30] leaves : illustrations

Keywords

Universal banks--Philippines; Banks and banking--Philippines

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