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Activity-based diversification, corporate governance, and the market valuation of commercial banks in the Gulf Commercial Council

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dc.contributor.author Chahine S.
dc.contributor.editor
dc.date 2007
dc.date.accessioned 2017-09-07T07:51:39Z
dc.date.available 2017-09-07T07:51:39Z
dc.date.issued 2007
dc.identifier 10.1007/s10997-007-9034-5
dc.identifier.isbn
dc.identifier.issn 13853457
dc.identifier.uri http://hdl.handle.net/10938/12281
dc.description.abstract This article examines the effect on market valuation of both corporate governance and the diversity of activities conducted by GCC commercial banks. It shows evidence on the endogenous effect of corporate governance and the characteristics of the banking industry in determining the diversification level of a bank. Empirical findings show a bias in results using ordinary least squares regressions. When controlled for endogeneity, they indicate a negative (but weak) association between the diversification index and the market valuation-consistent with the agency-based hypothesis. Interestingly, foreign banks and corporate shareholders are effective monitors who invest in more diversified GCC banks with higher valuation multiples. Conversely, domestic corporate shareholders-related by a complex web of relationships-invest in less diversified banks with a lower market valuation. In addition, diversified commercial banks with either subsidiaries in developed countries or involvement in market-based activities have higher market valuation. The latter may be explained by the effect on performance of the recent bubble in the Arab stock market. © 2007 Springer Science+Business Media, LLC.
dc.format.extent
dc.format.extent Pages: (353-382)
dc.language English
dc.relation.ispartof Publication Name: Journal of Management and Governance; Publication Year: 2007; Volume: 11; no. 4; Pages: (353-382);
dc.relation.ispartofseries
dc.relation.uri
dc.source Scopus
dc.subject.other
dc.title Activity-based diversification, corporate governance, and the market valuation of commercial banks in the Gulf Commercial Council
dc.type Article
dc.contributor.affiliation Chahine, S., Suliman Olayan School of Business, American University of Beirut, 11-236, Beirut, Lebanon
dc.contributor.authorAddress Chahine, S.; Suliman Olayan School of Business, American University of Beirut, 11-236, Beirut, Lebanon; email: salim.chahine@aub.edu.lb
dc.contributor.authorCorporate University: American University of Beirut; Faculty: Suliman S. Olayan School of Business; Department: School of Business;
dc.contributor.authorDepartment School of Business
dc.contributor.authorDivision
dc.contributor.authorEmail
dc.contributor.authorFaculty Suliman S. Olayan School of Business
dc.contributor.authorInitials
dc.contributor.authorOrcidID
dc.contributor.authorReprintAddress
dc.contributor.authorResearcherID
dc.contributor.authorUniversity American University of Beirut
dc.description.cited
dc.description.citedCount 5
dc.description.citedTotWOSCount
dc.description.citedWOSCount
dc.format.extentCount 30
dc.identifier.articleNo
dc.identifier.coden
dc.identifier.pubmedID
dc.identifier.scopusID 36949028736
dc.identifier.url
dc.publisher.address
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dc.relation.ispartofConferenceCode
dc.relation.ispartofConferenceDate
dc.relation.ispartofConferenceHosting
dc.relation.ispartofConferenceLoc
dc.relation.ispartofConferenceSponsor
dc.relation.ispartofConferenceTitle
dc.relation.ispartofFundingAgency
dc.relation.ispartOfISOAbbr
dc.relation.ispartOfIssue 4
dc.relation.ispartOfPart
dc.relation.ispartofPubTitle Journal of Management and Governance
dc.relation.ispartofPubTitleAbbr J. Manage. Gov.
dc.relation.ispartOfSpecialIssue
dc.relation.ispartOfSuppl
dc.relation.ispartOfVolume 11
dc.source.ID
dc.type.publication Journal
dc.subject.otherAuthKeyword Corporate governance
dc.subject.otherAuthKeyword Diversification
dc.subject.otherAuthKeyword GCC commercial banks
dc.subject.otherAuthKeyword Market valuation
dc.subject.otherAuthKeyword Ownership structure
dc.subject.otherChemCAS
dc.subject.otherIndex
dc.subject.otherKeywordPlus
dc.subject.otherWOS


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