Please use this identifier to cite or link to this item: https://repository.iimb.ac.in/handle/123456789/10973
Title: Business strategy and systemic risk: evidence from Indian banks
Authors: Gupta, Rohit 
Jayadev, M   
Keywords: Business strategy;Differentiation;Wholesale banking;Systemic risk
Issue Date: 2016
Publisher: Indian Institute of Management Bangalore
Series/Report no.: Working Paper-FPM
Abstract: This study examines the impact of business strategic choices on systemic risk using unique panel data from banks in India, for a 29-quarter period. Based on the publicly available quarterly revenue information on business segments, the study will associate the revenue segment information with choices related to business strategies of banks and allow equity prices to predict systemic risk associated with strategic choices related to focus, diversification and differentiation. The results of panel data analysis show that systemic risk is reduced if state-owned banks focus less on corporate segments, consistent with prior empirical evidence. The study also find that diversifying across business segments by a private sector bank, reduces systemic risk, which is in contrast to the international evidence. Further, this study do not find any impact of differentiation strategy on systemic risk, which is also in contrast to international evidence.
URI: http://repository.iimb.ac.in/handle/123456789/10973
Other Identifiers: WP-IIMB-503
Appears in Collections:2016

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