@article{Rafif_Bustaman_2020, title={RESPON BURSA SAHAM TERHADAP STRATEGI DIVERSIFIKASI PENDAPATAN PERBANKAN}, volume={7}, url={https://journal.sgu.ac.id/ijembm/index.php/ijembm/article/view/127}, DOI={10.33555/ijembm.v7i2.127}, abstractNote={<p>We evaluate how the Indonesian stock market has reacted to the banking&nbsp;diversification revenue strategy in the period of 2009-2016. The market&nbsp;reactions are measured by the ratio of market equity capitalization to its book&nbsp;value equity (MB) and market viability or solvency is proxied by the bank’s&nbsp;market-based Z score. Using panel data regression, we find that the higher&nbsp;the level of diversification of bank revenue response positively by the market&nbsp;indicating by improving on banks’ capitalization ratio and market solvency.&nbsp;It shows that revenue diversification could produce a significant impact on&nbsp;bank profitability and reduce the probability of bank failure. Additionally, our&nbsp;results reveal that the larger size of the bank, the riskier the bank, however,<br>these larger banks could achieve higher market equity capitalization that&nbsp;protects them from insolvency problems. Banks having large book equity&nbsp;capital response positively by the market, it indicates a positive relationship&nbsp;between this variable and Z score.</p&gt;}, number={2}, journal={Emerging Markets : Business and Management Studies Journal}, author={Rafif, Helmi and Bustaman, Yosman}, year={2020}, month={Jul.}, pages={137-145} }