| Author | Tariq, Adeel |
| Call Number | AIT RSPR no.SM-14-06 |
| Subject(s) | Banks and banking--Pakistan
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| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-14-06 |
| Abstract | Revenue diversification is an emerging strategy used in the banking sector to increase market power, achieve economies in cost, higher profitability and reduce level of risk. Banks in Pakistan are diversifying from traditional income to non-traditional income to achieve numerous benefits. Due to banking sector vital role, it remains subject to interest increase regulation to become more efficient. This study examines the effect of income diversification on Value Creation of commercial banks in Pakistan for the time period 2005-2012. This study investigates how financial reforms moderate the relationship among non-traditional income, risk taking and Value Creation. Data is manually collected from financial statements of the 26 commercial banks and Karachi Stock Exchange. Economic Value Added is used in this study to calculate Value creation as more robust measure. Using panel data analysis, this study finds insignificant and negative effect of revenue diversification on value creation and risk taking of the banks. Financial reforms moderate the relationship significantly and help banks to reduce risk and create more value using income diversification. Size of the banks has significant effect on value creation and on risk taking of banks. Leverage ratio and Gross domestic product influence risk taking and value creation of the banks. No significant effects of conventional, Islamic, private and public banks are found in this study on the value creation and risk taking of the banks. |
| Year | 2014 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Supasith Chonglerrtham; |
| Examination Committee(s) | Sununta Siengthai ;Badir, Yuosre; |
| Scholarship Donor(s) | Higher Education Commission (HEC), Pakistan ;Asian Institute of Technology Fellowship; |
| Degree | Research report (M.B.A.) - Asian Institute of Technology, 2014 |