Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/189854 
Year of Publication: 
2017
Series/Report no.: 
Staff Report No. 813
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
Using a novel database containing the time-series details of the organizational structure of individual bank holding companies, this paper presents the first population-wide study of the transformation in business scope of U.S. banks. Expanding scope has a negative impact on performance on average. However, we find that firms whose expansion keeps them closer to the prevailing "modal bank" are better off compared with those pursuing generic diversification. Moreover, we find that early expanders into particular activities benefit more, whereas late adopters, rather than benefitting by "fitting the norm", lose out.
Subjects: 
business scope
performance
diversification
JEL: 
G21
L22
L25
Document Type: 
Working Paper

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