The Effect of Operational Risk, Credit Risk And Revenue Diversification on Profitability

This study aims to determine the effect of Operational Risk, Credit Risk and Income Diversification on Profitability in banking companies listed on the IDX for the 2016-2020 period.The analytical method used is Panel Data Regression analysis. The results obtained from this study: i) Operational Risk has a positive and significant effect on profitability in banking companies listed on the IDX for the 2016-2020 period. ii) Credit Risk has a negative and significant effect on profitability in banking companies listed on the IDX for the 2016-2020 period. iii) Income Diversification has a negative and significant effect on profitability in banking companies listed on the IDX for the 2016-2020 period. iv) Operational Risk, Credit Risk and Diversification have a positive and significant simultaneously positive and significant effect on Profitability in Banking companies listed on the IDX for the 2016-2020 period.

Income Diversification and Income Inequality: Household Responses to the 2013 Floods in Pakistan

In this paper we investigate the economic response of rural households to the 2013 floods in Pakistan. The case study illustrates the important roles of labor supply adjustments and income diversification in coping with climate-related risks. Using detailed household panel data that were collected before and after the 2013 floods, we find that the exposure to flood results in lower participation in farm activities. The overall effects are decreased diversification in the sources of income and ambiguous reduction in inequality which is associated with overall declines in incomes. These changes could be locked in if affected households do not have sufficient assets to resume farming. The results suggest intervention points for public policy, related to labor mobility and access to capital.

Determinants of Income Diversification Strategies among Agricultural Households in the Philippines using National Survey Data

Household income diversification is a critical pathway to improve the living standard of agricultural households. It is the process by which households actively seek to increase the number of income-generating activities. This study sought to describe the prevalence and patterns of income diversification among agricultural households and to identify the factors related to the degree of income diversification. The study applied a quantitative research design using a cross-sectional survey from the Philippine Statistics Authority. The fractional response regression model was used to determine the factors affecting income diversification. Results revealed that most of the household samples have two income sources. Most come from agricultural labor, crop farming, and gardening. Factors related to income diversification are sex, age, education, family size, being married, agricultural income, access to credit, cash support, access to electricity and water, access to information and communication, and vehicle ownership.

Income Diversification by agro- Pastoralists in Cholistan Desert Punjab, Pakistan

The pastoralists are economically depend upon livestock for their income which include their herds of livestock and the bi products produced and sold. The nomads keep moving in search of food and forage so they do not completely destroy the natural resource of a particular area. During their journey of searching water sometimes make them closer to the agriculture land near towns where they used to earn through off farm activities which include the income earned through their unskilled labour activities. The multinomial probit regression employed in this study for analysis revealed that many pastoralists adopt the income diversification strategies which are the coping strategies for other than livestock income to reduce the risks attached with livestock income. The role of Govt. and NGOs for improvement in infrastructure is envisaged to find the enhancement of livestock sector in the area is explored in this study. The study is unique in providing perspective on providing access to different facilities and the role of government in improving living of population.

Bank maturity, income diversification, and bank stability

The purpose of this research is to examine the influence of bank life cycle or bank maturity on income diversification (ID) and stability. In addition, this research investigates the ID relationship with bank stability. Drawing on the dynamic resource-based view and modern portfolio theory, this research examines the influence of a paramount internal factor i.e. bank life cycle or bank maturity on income diversification (ID) and stability consequence. Data were collected from the Pakistani’s commercial banks’ financial statements over the period 2005 to 2019. This research relied on the fixed effect and generalized method of moments (GMM) model to empirically test the proposed relationships. Core findings of the research reveal that bank maturity leads to enhanced ID and ID strongly influences the bank stability consequence, moreover, research findings are robust to use different measures of bank stability and GMM estimation techniques. To the authors’ best knowledge, this research is the first to report specific evidence about bank maturity as an internal driver of income diversification and stability and advances the literature seeking to understand the determinants of ID. This research also shows managers to recognize the importance of internal drivers to diversify effectively into non-interest income, and how such an effective ID translates into stability consequence.