아태비즈니스연구 (Asia-Pacific Journal of Business)

  • 제9권3호
  • /
  • Pages.37-50
  • /
  • 2018
  • /
  • 2233-5900(pISSN)
  • /
  • 2384-3934(eISSN)
강원대학교 경영경제연구소 (KNU The Institute of Management & Economy Research)
권호 표지
DOI QR코드

DOI QR Code

신용협동조합의 영업다각화가 경영성과에 미치는 영향

The Diversification and Financial Performance of Korean Credit Unions

  • 현정환 (광운대학교 국제통상학부)
  • Hyun, Jung-Hwan (Department of International Trade, Kwangwoon University)
  • 투고 : 2018.08.31
  • 심사 : 2018.09.21
  • 발행 : 2018.09.30
PDF 다운로드
⟨ 이전 논문 다음 논문 ⟩

초록

This paper examines the relationship between diversification and financial performance of community credit unions in Korea from 2011 to 2017. To do so, I employ fixed-effects panel analyses using credit union level panel data collected from the National Credit Union Federation of Korea. This study finds evidence that business diversification is likely to lower the ratio of troubled loans, which means improving asset quality of credit unions. However, the relationship between diversification and asset quality is not linear but nonlinear, which means over-diversification would have negative effects on asset quality. Next, diversification tends to increase profitability. Specifically, although diversification results in a rise in expenditures, an increase in profits made by diversification outweighs the rise in expenditures, which contributes to profitability. Put together, diversification would be a good business strategy to improve both profitability and asset quality. Given a result that fast loan growth deteriorates asset quality, credit unions' managers might adopt the diversification strategy to enhance asset quality, and not to pursue their own objectives motivated by moral hazards.

키워드

참고문헌

  1. Quan, Ri-Shu and Won-Sik Sul (2014), "A Study on the Default Risk of Korean Local Credit Unions", Journal of the Korean Entrepreneurship Socieity, 9(3), 104-130.
  2. Quan, Ri-Shu, Won-Sik Sul and Rae-Soo Park (2015), "Characteristics of the Credit Union and Its Response Capability against the Global Financial Crisis", Journal of financial knowledge, 13(3), 67-93.
  3. Park, Junghee and Hyunsoo Byun (2010), "A Study on the Relationship between Non-interest Activities and Return Volatility in Korean Banking", Journal of Economics Studies, 28(1), 1-24.
  4. Bae, Soo-Hyun (2018), "A Study on the Effects of Diversification on Savings Bank Performance: Focusing on the Difference of Performance of Savings Bank Belonging to Financial Conglomeration Group", Global Business Administration Review, 15(2), 77-96.
  5. Hyun, Junghwan (2017), "Credit Union Performance and Macroeconomic Conditions: Evidence from Korea", Journal of Credit Union, 68, 67-103.
  6. Avery, R. B. and M. Gordy (1998), "Loan Growth, Economic Activity and Bank Performance", Board of Governors of the Federal Reserve System, Working Paper.
  7. Barney, J. (1997), Gaining and Sustaining Competitive Advantage (4th ed.), Addison-Wesley.
  8. Berger, P. G., E. Ofek (1995), "Diversification's Effect on Firm Value", Journal of Financial Economics, 37, 39-65. https://doi.org/10.1016/0304-405X(94)00798-6
  9. Berger, A. N., S. D. Bonime, D. M. Covitz and D. Hancock (2000), "Why are Bank Profits so Persistent?: The Roles of Product Market Competition, Information Opacity and Regional Macroeconomic Shocks", Journal of Banking and Finance, 24, 1203-1235. https://doi.org/10.1016/S0378-4266(99)00124-7
  10. Caves, R. E. (1981), "Diversification and Seller Concentration: Evidence from Change: 1963-72", Review of Economics and Statistics, 63(2), 289-293. https://doi.org/10.2307/1924100
  11. Cummins, J. D. and R. D. Phillips (2005), "Estimating the Cost of Equity Capital for Property-Liability Insurers," Journal of Risk and Insurance, 72(3), 441-478. https://doi.org/10.1111/j.1539-6975.2005.00132.x
  12. Cummins, J. D. and P. Trainar (2009), "Securitization, Insurance, and Reinsurance", Journal of Risk and Insurance, 76(3), 463-492. https://doi.org/10.1111/j.1539-6975.2009.01319.x
  13. Goddard, J., D. McKillop and J. O. S. Wilson (2008), "The Diversification and Financial Performance of US Credit Unions", Journal of Banking and Finance, 32, 1836-1849. https://doi.org/10.1016/j.jbankfin.2007.12.015
  14. Lang, L. H. and R. M. Stulz (1994), "Tobin's Q , Corporate Diversification, and Firm Performance", Journal of Political Economy, 102, 1248-1280. https://doi.org/10.1086/261970
  15. Markides, C. C. and P. J. Williamson (1994), "Related Diversification, Core Competencies and Corporate Performance", Strategic Management Journal, 15(52), 149-165.
  16. Meslier, C., R. Tacneng and A. Tarazi (2014), "Is Bank Income Diversification Beneficial?: Evidence from an Emerging Economy", Journal of International Financial Markets, Institutions and Money, 31, 97-126. https://doi.org/10.1016/j.intfin.2014.03.007
  17. Pennathur, A. K., V. Subrahmanyam and S. Vishwasrao (2012), "Income Diversification and Risk: Does Ownership Matter? An Empirical Examination of Indian Banks", Journal of Banking and Finance, 36, 2003-2215.
  18. Riordan, M. H. and O. E. Williamson (1985), "Asset Specificity and Economic Organization," International Journal of Industrial Organization, 3(4), 365-378. https://doi.org/10.1016/0167-7187(85)90030-X
  19. Stiroh, K. J. (2004), "Do Community Banks Benefit from Diversification?", Journal of Financial Service Research, 25, 135-160. https://doi.org/10.1023/B:FINA.0000020657.59334.76
  20. Stiroh, K. J. and A. Rumble (2006), "Diversification in Banking: Is Non-interest Income the Answer?", Journal of Money, Credit, and Banking, 36, 853-882.
  21. Wernerfelt, B. and C. A. Montgomery (1988), "Tobin's Q and the Importance of Focus in Firm Performance", American Economic Review, 78, 246-250.
  22. Wooldridge, J. M. (2009), Introductory Econometrics (4th ed.), Ohio: South-Western Cengage Learning.

피인용 문헌

  1. 농업협동조합 계약재배 사업의 성과 결정요인 분석 vol.11, pp.1, 2018, https://doi.org/10.32599/apjb.11.1.202003.27