2019/09/03 by Nesrine Ammar, N. Ammar, Adel Boughrara · 12 citations
Business, Management and Accounting · Economics, Econometrics and Finance · #Banking stability, regulation, efficiency #Business #Corporate Finance and Governance #Diversification (marketing strategy) #Econometrics #Economics #Finance #Financial intermediary #Financial system #Intermediation #Islamic Finance and Banking Studies #Loan #Margin (machine learning) #Net interest margin #Panel data #Profitability index #Return on assets #Sample (material)
paper · doi:10.1002/mde.3079
published in Managerial and Decision Economics 40(8), 907-922 (Wiley)
crossref issued 2019/09/03 · crossref published 2019/09/03 · crossref published-online 2019/09/03 · openalex publication_date 2019/09/03 · crossref created 2019/09/04 · crossref published-print 2019/12/01 · crossref deposited 2023/09/02 · openalex created_date 2025/10/10 · crossref indexed 2026/07/31 · openalex updated_date 2026/08/01
This paper empirically determines the drivers of functional diversification decision for 365 banks set in selected Middle East and North Africa (MENA) countries over 1988–2015. For this purpose, we use a dynamic nonlinear panel data model. Our findings reveal that both market share and financial intermediation stratify the diversification decision for the whole MENA sample. Splitting the sample shows that the risk‐adjusted profitability and the loan loss provision ratio exert a major influence over the diversification indicator for Gulf Cooperation Council (GCC) banks, whereas the net interest margin ratio, the bank market share, and financial intermediation are the major drivers of the strategic decision for the remaining non‐GCC banks.