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
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
Recommended Citation
Arnedo, P. F., Caringal, K. C., Dy, D. P., & Rubio, M. D. (2011). Philippine universal bank's degree of product and revenue diversification: Determinants and effects on financial performance. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18480