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This study analyzed the impact of income diversification on agricultural output in Indonesia. We specifically focused on the effects of the cultivation of multiple crops, household heads’ employment in non-agricultural sectors, and regional differences in paddy rice productivity per area. We assessed cross-sectional data from the 2013 Census of Agriculture in Indonesia. Indonesian farmers actively channeled wage income into spending on agricultural inputs to improve yields. However, agricultural production continued to depend on human labor, and labor force loss due to wage labor employment was observed. In terms of magnitude, the effect of productivity gains due to labor force loss was larger and was not compensated for by the impact of wage income. Also, while the Indonesian government has been focusing on policies for subsidizing fertilizer use, the data show that less than 30 percent of households receive government subsidies for seeds, fertilizers, and machinery. These utilization rates should be improved. [ABSTRACT FROM AUTHOR]

With a sample of 28 commercial banks in Vietnam – an emerging market – this study applies the generalized movement model estimation technique (GMM-SYS) to examine the influences of income diversification and credit risk on bank stability (measured by Z-score) spanning from 2010 to 2020. The empirical findings document the significant impacts of income diversification and credit risk, together with specified macroeconomic and bank-specific indicators, on bank stability. A threshold analysis, in addition, quantifies the recommendation changes in NPL and LLP to contribute to bank stability. Some policy implications are subsequently withdrawn to promote the stability of Vietnamese commercial banks. [ABSTRACT FROM AUTHOR]

The study investigated the moderating effect of bank size on the relationship between income diversification and asset diversification on bank stability in the context of commercial banks in Bangladesh. A total of 180 observations from 36 listed banks were collected, all listed on the Dhaka Stock Exchange. The sample period of this study spanned from 2018 to 2022. The findings revealed that both income and asset diversification had a positive impact on bank stability. Bank size moderated the relationship between income and asset diversification with bank stability. Thus, increasing the size of banks reduced the benefits of income and asset diversification on bank stability, suggesting that larger banks may not gain much from diversification. These results have implications for policymakers and bank managers. They should employ diversification strategies tailored to bank size so that banks will benefit from diversification in the long run. This study is one of the few that uniquely reveals a negative moderating role of bank size in diversification (income and asset) and stability relationships. [ABSTRACT FROM AUTHOR]

This study focuses on the crucial topic of income diversification and its implications for bank risk, using the context of India's public and private Sector banks. The research spans the years 2005–2021, investigating the influence of varying degrees of non‐interest income on the risk profiles of Indian banks. Employing a program impact evaluation methodology, the study employs the generalised propensity score‐fractional dose–response function technique to ascertain the impact of different levels of non‐interest income on bank risk. The outcomes underscore the diverse effects of diversification contingent upon factors like bank size and ownership type, including large and small banks as well as public and private sector institutions. Notably, the aftermath of the Global Financial Crisis introduced distinctive dynamics to income diversification's impact. By segmenting the study timeline into two periods—2005–2013 and 2014–2021—it emerges that income diversification lowered bank risk in the earlier period, while conversely amplifying risk in the latter phase. These insights bear significance as an early warning mechanism for bank executives, policymakers, and regulatory authorities, enabling them to navigate strategic transitions associated with non‐interest income. Employing a novel approach, this research contributes to the literature by evaluating the interplay between income diversification and bank risk across diverse levels of non‐interest income mix. In contrast to conventional econometric methods, the use of the generalised propensity score method stands out as a robust technique to mitigate confounding biases inherent in non‐experimental inquiries. [ABSTRACT FROM AUTHOR]

Understanding the diverse livelihood strategies of herder households, as well as the factors that shape these strategies, is crucial for advancing sustainable development in pastoral area and combating rural poverty. This study aims to assess the livelihood strategies employed by herder households, categorize the diverse types of household livelihood strategies, and elucidate the asset factors that influence households' choices of livelihood strategies. Data were collected from a sample comprising 136 herder households, selected through a random sampling method from 7 villages situated within the traditional pasture territory of southwestern Iran. Using a 2-step cluster analysis based on the share of household income, 2 distinct livelihood strategies were recognized: income originating from farm animal–related products and activities (Cluster 1) and diversified livelihoods strategies (Cluster 2). The findings indicated that a majority of households (58.82%) relied exclusively on livestock-related products and activities for their income. Households possessing greater rangeland and farmland as indicators of natural capital (β = 5.184, P = 0.004) as well as those with more livestock, which serves as physical capital (β = 2.914, P = 0.042), demonstrated a heightened likelihood of adopting livelihood strategies centered on livestock-related products and activities. Conversely, households with higher levels of education indicative of human capital (β = –2.770, P = 0.027) were less inclined to pursue this type of livelihood strategy. The study highlights the prevalence of impoverished households in 2 livelihood strategy clusters, with a notably higher percentage of extremely poor herder households identified in Cluster 1 (27.5%) than Cluster 2 (10.7%). The findings suggest that the government should consider implementing measures to transition nonfarm animal–related products and activities into a sustainable livelihood option. Furthermore, it is recommended that policies supporting diversified livelihood strategies take precedence in efforts to break the cycle of poverty. [ABSTRACT FROM AUTHOR]

The widespread adoption of mobile phones (MPs) presents the possibility of creating employment and self‐employment opportunities. Although several studies have documented the impact of MPs on income, the link between MP ownership and poverty reduction channeled by income diversification has not been fully explored. This paper aims to examine this relationship using nationally representative panel data and fixed effect models to account for confounding factors and unobserved heterogeneity. Results indicate that MP ownership is associated with increased income diversification, particularly through on‐farm and off‐farm self‐employment, as well as non‐earned income. This relationship is more pronounced in households with lower levels of education and deprived areas. In addition, owning a MP is also found to decrease poverty via income diversification. Therefore, policies aimed at enhancing access to mobile technologies could create a resilient income portfolio by decreasing transaction costs and improving market efficiency, ultimately mitigating poverty in rural regions. [ABSTRACT FROM AUTHOR]

This study examines the role of the Sustainable Livelihood Approach (SLA) in supporting aquaculture households in Sidoarjo Regency as they adapt to structural shifts driven by industrialization and urbanization. The research analyzes how sustainable livelihood strategies enhance the economic stability of pond-based households impacted by land-use change. Using a quantitative approach with descriptive analysis, the study employs Structural Equation Modeling Partial Least Squares (SEM-PLS) to evaluate the influence of key variables. Conducted in Kalisogo Pond Village, the study uses purposive sampling based on criteria such as economic reliance on aquaculture and sector experience. Data were gathered through questionnaires and analyzed for model validity and reliability. Findings indicate that the SLA significantly bolsters pond households’ adaptive capacity to structural shifts. Income diversification through non-aquaculture activities enhances economic stability and reduces dependence on pond farming. Social capital further supports households by strengthening local community networks. The study underscores the importance of institutional backing and microcredit access for aquaculture households. Policymakers and financial institutions are encouraged to support sustainable adaptation measures. These findings offer valuable insights into the SLA’s application amid structural changes in industrialized coastal regions.

This study investigates the determinants and extent of crop diversification and its impact on farm households' income and income diversification in rural Bangladesh, utilizing data from 450 households across the districts of Manikganj, Tangail, and Gaibandha. The findings reveal moderate to high levels of crop and income diversification across these sites. Using a Tobit model, the study identifies significant socio-economic factors influencing crop diversification, including literacy, farm size, and market distance. Additionally, it shows that crop diversification intensity, the household head's age and education, and on- and off-farm income significantly affect income diversification. These factors, along with farm size, also significantly impact crop income. This research addresses a significant gap in the literature by exploring the underexamined interaction between crop diversification and income diversification in Bangladesh. It contributes to a broader understanding of how diversification strategies can enhance agricultural productivity and income stability and offers valuable policy implications. [ABSTRACT FROM AUTHOR]

Managing economic risk is a challenging endeavor for fishers. One of the ways to mitigate such risk is through income diversification spanning even beyond fishing activities. However, the role of non-fishing income on risk management has been poorly understood. Here we investigate the relationship between fishing risk levels and secondary incomes by analyzing risk levels of fishers' incomes from fishing, non-fishing, and partner income sources for Swedish fisheries from 2004 to 2015. We find that fishers with a balanced share of fishing and secondary incomes have lower risk levels than fishers who primarily rely on fishing income. Both non-fishing income and partner income reduce risk levels. [ABSTRACT FROM AUTHOR]

Despite the clear synergy between food security and politics, economic policy frameworks have not given adequate attention to the political economy of income diversification as a means of improving food security. To determine the drivers of rural income diversification for enhancing food security in Ghana, the study analyzed the income diversification activities of 500 rural households using cross-sectional data. Results from the Count index, Simpson’s diversification index (SDI), Tobit, Poisson and multiple linear regression, revealed that the long-term income diversification measure proxied by the Number of Economic Activities (NEA), undertaken by rural households ranged from 1 to 10. Moreover, using the short-term income diversification measure, the Simpson diversification index, averaged 79.6% with a range of 41% to 89%. The findings suggest that the average NEA required to improve food security in Northern region was 7. Although total expenditure on food increased with increasing SDIs, diversification beyond 89% led to a decline in food security. The relationship between income diversification and the age of respondents also resembled a U-shaped curve implying that age impacts negatively on income diversification opportunities in the initial stages. A possible explanation is that people below a certain age are predominately dependent on relatives for their economic livelihoods. However, once they reached a certain age or turning point, there was increasing income diversification. Technical education was found to be the most important variable affecting the Simpson Index with a standardised parameter value of 1.171, which was three times more influential in diversification than its nearest rival variable, formal education (0.330).

This study was conducted to analyze the determinants of urban household income diversification and its relation to household food security status in Ethiopia. A cross-sectional research design and mixed research method of the sequential transformative strategy were used. A multistage sampling procedure was used to select 200 households. Primary data were collected with the aid of household surveys, key informant interviews, and focus group discussions. The study used descriptive statistics, Simpson diversity index, per-capita calorie consumption, ordered logistic regression model, and simple linear regression model to analyze the socio-economic data, level of income diversification, food security status, determinants of income diversification, and the effect of income diversification on household food security respectively. The overall mean of household income was 70,241.5 birr. The Simpson diversity index result showed that 8%, 24%, 53.5%, and 14.5% of the households were no, less, average, and high diversifiers respectively with a mean of 0.36. The per-capita calorie consumption result indicated that 53% of households were food secure and 47% of households were food insecure. The ordered logistic regression model revealed that education level (B = 0.72, p

Understanding the diverse livelihood strategies of herder households, as well as the factors that shape these strategies, is crucial for advancing sustainable development in pastoral area and combating rural poverty. This study aims to assess the livelihood strategies employed by herder households, categorize the diverse types of household livelihood strategies, and elucidate the asset factors that influence households' choices of livelihood strategies. Data were collected from a sample comprising 136 herder households, selected through a random sampling method from 7 villages situated within the traditional pasture territory of southwestern Iran. Using a 2-step cluster analysis based on the share of household income, 2 distinct livelihood strategies were recognized: income originating from farm animal–related products and activities (Cluster 1) and diversified livelihoods strategies (Cluster 2). The findings indicated that a majority of households (58.82%) relied exclusively on livestock-related products and activities for their income. Households possessing greater rangeland and farmland as indicators of natural capital (β = 5.184, P = 0.004) as well as those with more livestock, which serves as physical capital (β = 2.914, P = 0.042), demonstrated a heightened likelihood of adopting livelihood strategies centered on livestock-related products and activities. Conversely, households with higher levels of education indicative of human capital (β = –2.770, P = 0.027) were less inclined to pursue this type of livelihood strategy. The study highlights the prevalence of impoverished households in 2 livelihood strategy clusters, with a notably higher percentage of extremely poor herder households identified in Cluster 1 (27.5%) than Cluster 2 (10.7%). The findings suggest that the government should consider implementing measures to transition nonfarm animal–related products and activities into a sustainable livelihood option. Furthermore, it is recommended that policies supporting diversified livelihood strategies take precedence in efforts to break the cycle of poverty.

In the context of threats to their financial sustainability, this paper uses Resource Dependency Theory to explore the challenges being faced by a sample of 10 small new public universities in England. It discusses the responses being taken and prospects for the future in this segment of the sector. It concludes that some of the most important elements of income and expenditure are also areas where institutions have amongst the lowest levels of autonomy, including tuition fees, staff salaries and pension costs. It suggests that institutions are proactively seeking ways to both adapt their strategy and influence the environment in which they operate, including the introduction of new organisational forms, models for employing staff, the diversification into new programmes and markets, and greater use of domestic and international partnerships. [ABSTRACT FROM AUTHOR]

The lives of rural households are predominantly based on agriculture and its allied activities. However, there are signs of an agricultural crisis resulting in dependence on alternative sources of income. This paper analyzes the factors that influence the decision of farm households to participate in non-farm activities for alternative income. The official data for two years on the Situation Assessment Survey of Agricultural Households are explored and a pooled probit regression model is run to examine the determinants of income diversification. Our findings reveal that farm income and irrigated land negatively influence diversification. However, diversification of those having lower access to farm holdings, socioeconomic deprivation, and improved access to education, informal credit, and crop insurance point out positive participation in non-farm enterprises. In addition, the population belonging to hilly and coastal plain regions and the age group 30–64 years are more likely to diversify. [ABSTRACT FROM AUTHOR]

Financial benefits from Eucalyptus woodlot growing can surpass staple crop production; nevertheless, the reasons for this shift and its potential impacts on income diversification remain largely unknown in the highlands of Ethiopia. Using a binary logistic regression model, the study aimed to evaluate the factors influencing the conversion of cropland to Eucalyptus camaldulensis woodlots. The independent t-test and the Simpson Diversity Index were used to evaluate the impact of transition on income diversification. Quantitative data gathered from 337 randomly chosen household heads were used in the analysis. Results revealed that market demand for E. camaldulensis woodlot, plot accessibility to a transportation route, declining cropland productivity, more saving potential, and total land holding size significantly influenced the decisions of farmers to convert their croplands into E. camaldulensis woodlot. Woodlot adopters diversified their source of income by 49.4 % compared to non-adopters, implying that eucalyptus woodlot plantings can be more preferred to income improvement than crop production. Policy makers must pay attention to important factors that significantly influence the decisions that farmers make about the conversion of croplands into E. camaldulensis woodlots. Increased growth in woodlots with balanced cropland output through a sustainable land management approach is required to increase the diversification of income among farmers.

Livelihood capital is the core element of sustainable livelihood development for rural households. Based on the survey data of 615 growers in the main rubber-producing areas of Hainan and Yunnan province, this paper constructs an evaluation system of rubber growers' livelihood capital within the sustainable livelihood analysis framework and calculates key indicators, such as farmers' livelihood capital index, livelihood activity diversity index, and household income diversity index. The multiple regression model and the mediating effect model are used to explore the influence mechanism of livelihood capital on the sustainable livelihood of rural households. The following three conclusions are drawn: (1) The accumulation of livelihood capital of rural households is conducive to enriching the structure of household livelihood activities and income sources, especially the accumulation of financial capital, which is more likely to improve the diversity of household livelihood activities. Regional differences exist in the impact of livelihood capital structures on rural household livelihood outcomes. Natural capital endowment has a significant effect on the income diversification level in Hainan, but there may be a "curse" effect in Yunnan. (2) Geographical characteristics, production decisions, and farming household characteristics significantly impact sustainable livelihoods. The altitude of the village and the distance from the county seat pose certain challenges for farmers in diversifying their livelihoods. Although the law of rubber tapping production may weaken farmers' production and business activities, it can better stabilize farmers' incomes owing to its strong flexibility in labor arrangements, which may be beneficial for diversifying livelihoods; however, it does not necessarily lead to diversified incomes. While the characteristics of poor households can help rural households gain policy support, building capacity is the key to achieving a sustainable livelihood. (3) There are intermediary effects of livelihood capital on livelihood activities and household income, but the mechanisms of action are different. For the diversity of farmers' livelihoods, 52.70% of the catalytic effect of livelihood capital is achieved by improving the ability to integrate livelihood capital. Optimizing household employment strategies contributed to the promotion of livelihood capital on the income diversification index, with a mediating effect of 30.52%. The main contribution of this study is to clarify how livelihood capital can achieve the goal of diversifying household livelihood activities and income by coordinating livelihood capacity and employment strategies. Therefore, to enhance the comprehensive livelihood capacity of rural households, the coordination capacity of livelihood capital, livelihood capacity building should be enhanced, and employment information channels should be expanded.

The study investigated the moderating effect of bank size on the relationship between income diversification and asset diversification on bank stability in the context of commercial banks in Bangladesh. A total of 180 observations from 36 listed banks were collected, all listed on the Dhaka Stock Exchange. The sample period of this study spanned from 2018 to 2022. The findings revealed that both income and asset diversification had a positive impact on bank stability. Bank size moderated the relationship between income and asset diversification with bank stability. Thus, increasing the size of banks reduced the benefits of income and asset diversification on bank stability, suggesting that larger banks may not gain much from diversification. These results have implications for policymakers and bank managers. They should employ diversification strategies tailored to bank size so that banks will benefit from diversification in the long run. This study is one of the few that uniquely reveals a negative moderating role of bank size in diversification (income and asset) and stability relationships.

Copyright of Tropical Geography is the property of Tropical Geography Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Liquidity risk was at the heart of 2007–2008 global financial crisis, which has led to a series of financial institutions failure. We test whether and how liquidity risk impacts European banks' stability (i.e., a bank risk-return profile) under different levels of engagement in non-traditional banking activities after the global financial crisis and during the implementation of the Basel III liquidity rules. To calculate financial stability, we adopt an efficiency perspective based on the combination of the CAMELS rating system with the data envelopment analysis technique. We implement a nonlinear panel smooth transition regression approach, where transitional factors of income diversification are endogenously captured from the data. We find that, liquidity risk stemming from liquidity creation has a positive impact on bank stability, implying that income diversification can serve as a "buffer" through which banks can ensure their liquidity creation and offset for the compression of intermediation margin in lending and deposit activities. This suggests that diversification does not impede the ability of banks to operate with lower liquidity holdings but allows them to make greater use of their balance sheets to fulfill their primary roles of credit provision and liquidity creation. The results offer interesting implications for regulators and bank managers in managing liquidity risk. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore the determinants (bank-specific, industry-specific and macroeconomic) of income diversification across interest income and non-interest income as well as for non-traditional income sources (non-interest income) from 2004–2005 to 2021–2022. Design/methodology/approach: An unbalanced data set comprising 110 Indian commercial banks with 1480 observations is sampled in this study. Because of the bounded nature of the dependent variables (proxies of income diversification), the panel Tobit regression model is used. Findings: The findings reveal that income diversification is positively influenced by bank size, technological advancements, cost–income ratio, return on assets, market competition and inflation in the economy. However, the decision to diversify income sources is adversely impacted by the capital ratio, GDP and financial intermediation ratio. Moreover, factors such as asset quality (loan loss provisions) and liquidity ratio do not directly influence the diversification strategies in the Indian banking industry. Practical implications: The present study uses an extensive set of variables to provide insights into key factors for bank managers, regulators and policymakers to consider before developing diversification strategies. Originality/value: To the best of the authors' knowledge, this is the first study to examine the various bank-specific and macroeconomic determinants that affect income diversification in the Indian banking sector. The current study also investigates new variables such as technological advancements and a market concentration index for measuring competition, which have not been investigated in existing literature concerning bank income diversification in the Indian context. [ABSTRACT FROM AUTHOR]

Purpose – This research aims to examine the influence of intellectual capital on company performance, analyze the moderating effect of revenue diversification, and provide additional insight into intellectual capital. Design/methodology/approach – This research uses 38 banks in Indonesia that are listed on the Indonesia Stock Exchange (BEI) out of a total of 47 banks as research samples. The collected data was analyzed using linear regression and moderated regression analyses to test the effect of intellectual capital on company performance and the moderating impact of income diversification on intellectual capital and company performance. Findings – The results of the regression analysis show that intellectual capital (VAIC) has a positive effect on company performance. In contrast, income diversification is having a moderating impact on intellectual capital and company performance. The intellectual capital component has varying influences on company performance. Whereas VACA has a positive effect on company performance, VAHU also has a positive effect on company performance. In contrast, STVA does not affect company performance. Based on the moderation test, income diversification does not moderate the relationship between intellectual capital components and company performance. Research limitations/implications – This research uses the VAIC method to measure intellectual capital using financial report benchmarks. Future researchers should consider using new techniques that are more accurate and comprehensive in measuring intellectual capital. Thus, further research will provide a more precise picture of intellectual capital's influence in improving banking companies' performance. Practical implications – This research shows that banking activities with an intellectual capital orientation tend to improve company performance. So, it is recommended for banking companies to utilize and develop the intellectual capital they have. Originality/value – This research provides an understanding of intellectual capital. This research also contributes to developing economic theory related to intellectual capital and company performance.

Copyright of Gharee for Economics & Administration Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Microfinance institutions (MFIs) emerged intending to provide financial services to underserved populations, fostering economic inclusion and poverty alleviation. However, achieving this aim is wholly based on the MFIs’ financial sustainability and profitability. MFIs’ fundamental structural restrictions might make raising income through increased interest rates difficult. As a result, it is now widely acknowledged that MFIs with various revenue streams outperform those primarily focused on lending in terms of financial sustainability. This study investigates this link by assessing the impact of income diversification on the financial performance and financial self-sufficiency of the top ten listed Indian MFIs. The study uses eight years of panel data from 2016 to 2023, and analysis was made by applying descriptive statistics, Herfindahl-Hirschman Index (HHI), and panel data regression models. Our findings provide empirical support for the banking studies’ preference for focused strategies over diversification strategies, showing that expanding income sources has no impact on the financial performance (return on equity/return on asset) and financial self-sufficiency (FSS) of Indian MFIs. [ABSTRACT FROM AUTHOR]

This study examines whether nonlinear effects of income diversification on bank stability occurs in the European banking system. Based on the framework developed by Tone and Tsutsui (Omega 42(1):124–131, 2014), we propose a novel three-stage (deposit producing, intermediation, and value maximization) dynamic network slacks-based measure model to assess bank stability in a sample of 114 European commercial banks during the post financial crisis period (2010–2019). We use the panel smooth transition regression model (PSTR), as introduced by González et al. (Panel smooth transition regression models, CREATES research paper 2017-36. Department of Economics and Business Economics, Aarhus University, 2017), to investigate the potential regime-switching behavior of the relationship between income diversification and stability. Our findings show that higher levels of income diversification, into and within nontraditional banking generating activities, worsen bank stability. It results that, in the case of European banks, income diversification is sub-optimal as no benefits are found from "over diversification". Important policy implications arise from our findings pertaining to the optimality of income diversification and stability, which could be in conflict with banks' traditional lines of business aiming at promoting lending activities. [ABSTRACT FROM AUTHOR]

Large-scale funding of non-governmental organisations (NGOs) by states and corporations (external funding) can impact their functioning and diminish their civic character. It is therefore of importance to understand whether and how NGOs can become financially independent of external funding. In Central and Eastern Europe (CEE), many NGOs were kickstarted by large sums from foreign state and corporate sponsors with the hopes of creating an independent civil society reliant on domestic sources: a 'vibrant civil society'. However, did these NGOs become financially independent? This article examines a sample of 14 NGOs in Slovakia financed by the Trust for Civil Society in Central and Eastern Europe (CEE Trust), an organisation started by six private American foundations. Their funding is compared year by year, and it is found that between 2000 and 2020, foreign funding decreased from 97.2% to 55.2%, and corporate funding dropped from 92.1% to 31.2%. However, public sector funding increased from 1.2% to 35.6%. Civic funding remained low over the entire period, rising from 0.1% to 8.6%. Thus, external corporate funding was largely replaced by another type of external funding (public funding), and the role of one major foreign donor (the Trust) was largely replaced by another major foreign donor (European Union (EU) and European Economic Area (EEA) funds). The results suggest that it is difficult for NGOs kickstarted by external funding to achieve financial independence, at least on a timescale of 20 years. [ABSTRACT FROM AUTHOR]

AbstractThis study investigated whether income diversification moderates the relationship between Intellectual Capital and bank performance in Vietnamese commercial banks period 2007–2020 using the system generalised method of moments (GMM).” The results indicate that the value added intellectual coefficient (VAIC) and its components (“human capital efficiency (HCE), “ capital employed efficiency (CEE), and “structural capital efficiency (SCE)) have positive effects on bank performance. Second, the study examines that income diversification (ID) has a negative and considerable impact on bank performance. Finally, the findings show that income diversification, as a moderating element, lowered the overall impact of IC (Value Added Intellectual Capital (VAIC)) efficiency on bank performance. The role of income diversification in modulating the link between the distinct components of VAIC (HCE, SCE and CEE). While revenue diversification improved the influence of SCE on bank performance, it weakened the impact of HCE. Furthermore, income diversification had little effect on bank performance in terms of mitigating the effects of CEE. Therefore, this finding highlights the contribution by suggesting that non-traditional banking activities influence the relationship between Intellectual Capital and bank performance in Vietnam

AbstractThe relationship between income diversification and food security gained considerable attention in the academic literature in the last two decades. Smallholder farmers undertake income diversification activities to ensure improved food security amidst changing patterns of climate and rural socio-demographics. Understanding challenges of smallholder farmers in income diversification strategies is critical to assess the effectiveness of food security measures in savannah regions threatened by weather variability and environmental shocks. The aim of this study is to shed light on the challenges of income diversification in Northern rural Ghana and to add to the growing body of research seeking to understand the challenges of income diversification and its link to food security status of smallholder farmers in the deprived context of rural Africa. By exploiting a unique sample of 500 agricultural households in rural Ghana, we show that income diversification and food security status of smallholders is positively related for both food access and nutritional diversity. Our results show that income diversification played a significant role in improving food access and dietary consumption. Highly diversified households were more likely to report being food secure as higher income diversification translated into higher incomes and food security. The single most important factor which stood out as an explanatory variable for food security in Northern rural Ghana was spousal incomes generated from diversification. Spousal incomes accounted for (29.2%) of the share of total household incomes used to purchase food for farm families in distress seasons. The findings support the use of spousal income diversification pathways as a means of reducing the negative impacts of food insecurity in the Yendi and Bimbilla Municipalities of Northern Region. The study highlights the need for Ghana’s economic policy frameworks to address the following three cardinal challenges of income diversification : (1) poor access to start-up capital or funds, (2) poor condition of infrastructure, and (3) high costs of transportation, directly linked to the under development of Northern Ghana.

AbstractThe paper investigates how income diversification and capital adequacy affect the liquidity creation of banks in Kenya. We employed unbalanced panel data from 36 commercial banks from 2001 to 2020. We extracted data from published banks’ financial reports and statements. The study used the broad and narrow measures to measure liquidity creation. Owing to the persistent nature of liquidity creation, we used a dynamic panel model and a two-step system Generalized Method of Moments (SYS GMM) in the analysis. The findings suggest a positive linkage exists between income diversification and the liquidity creation of commercial banks, implying that well-diversified banks have a high level of liquidity creation and vice versa. However, the study discovered a negative relationship between capital adequacy and liquidity creation, supporting the financial fragility-crowding out hypothesis. Consequently, the study suggests that the diversification drive in banks must be reinforced to enhance their liquidity creation. Additionally, due to the tradeoff between capital adequacy and liquidity creation, an optimal level of capital is required to provide a buffer against shocks without negatively impacting liquidity creation, a crucial channel through which banks contribute to the economy.

Using a macro-level dataset covering 173 countries from 2000 to 2020, this study is the first attempt to examine how income diversification and market concentration are related to bank stability. Firstly, we document that bank stability is positively related to revenue diversification, suggesting that banks are more stable when they are more engaged in non-traditional activities. Secondly, market concentration is positively associated with bank stability, in line with the concentration-stability hypothesis that banks in a highly concentrated banking system are more likely to be more stable. Thirdly, we show that market concentration modifies the link between revenue diversification and bank stability. Specifically, it is shown that diversified banks are more stable in a more concentrated environment compared to those on a less concentrated market. These results are robust to multiple regression specifications with different proxies for bank stability and income diversification. [ABSTRACT FROM AUTHOR]

This paper aims to assess the degree of the income diversification of the UK higher education providers as a component of their overall financial resilience. In addition, we investigate a correlation between ranking, income diversification, and income size. The main research question is whether the higher ranking of the universities, in particular, is associated with higher income and higher diversification relative to lower-ranked universities. To measure income diversification using descriptive statistics, we use Hirschman-Herfindahl Index (HHI), Corrected HHI, and Revenue Diversification Index (RDI). We covered a period of ten years, from 2010/11 to 2019/20. The findings reveal that a higher ranking of the universities measured by both ranking systems has been significantly positively correlated with the size of income and income diversification and negatively correlated with income concentration. [ABSTRACT FROM AUTHOR]

This paper dresses a literature systematic review based on 83 peer-reviewed papers studying the impact of income diversification on bank performance. This review is motivated especially by the mixed literature findings about the effectiveness of income diversification on bank performance. Findings indicate that the nature of the effect of diversification on bank performance depends on a range of factors concerning the research methodology adopted. Indeed, the results reveal that the mixed results may be caused by the fact that researchers have examined the diversification–performance relationship in different study settings (US, Europe, MENA, Asia) using different study periods, different measures of diversification, and performance, different estimation methods and different regression models including different control variables. We think that our review would be important for practitioners and regulators to assess the empirical benefits of this profound change in the traditional banking business. Also, our paper might highlight the related pertinent academic issues that should be addressed in the future. [ABSTRACT FROM AUTHOR]

This paper applies exogenous shocks to investigate the impact of digital financial inclusion (DFI) on farmers' poverty vulnerability in China. We find that farmers in highly developed DFI areas are less vulnerable to the poverty trap. The result is robust to various checks, including propensity score matching and difference‐in‐differences method and the instrumental variable approach. Moreover, we find that income diversification is the possible economic channel through which DFI affects farmers' poverty vulnerability. Further analyses show that DFI has a "targeting" effect on those who are poor and vulnerable, and a synergistic effect by working with medical insurance and informal finance in terms of reducing farmers' poverty vulnerability. Our research findings provide new theoretical insights and useful guidance in enhancing financial inclusiveness and sustainable development in the post‐COVID‐19 era. [ABSTRACT FROM AUTHOR]

This study examines profitability as a mediating variable to explore variables that affect the capital buffer in commercial banks. The research population is conventional commercial banks operating in Indonesia, with an observation period of 2017–2020. A purposive sampling method was used, during which 90 observations were found. Data analysis used multiple regression and the Sobel test to test for the mediating role of profitability. The results show that profitability acts as a mediating variable for non-performing loans and the ratio of loans to deposits in the capital buffer. Therefore, it is suggested that banks must maintain their ability to generate profitability in order to avoid liquidity risk. Another finding that is also important for bank managers is that non-performing loans have a significant effect on reducing profitability, while loans to total assets have a positive impact. Loan-to-deposit ratio and income diversification are not significant to profitability. Profitability, debt-to-total assets ratio, and income diversification have a negative impact on the capital buffer. Non-performing loans are not significant, while the loan-to-deposit ratio has a significant positive impact on the capital buffer.

Purpose – The impact of diversification on bank stability and risk remains an ongoing topic of discussion with inconclusive results. Hence, this study investigated the implications of income diversification on bank stability within African markets. Design/methodology/approach – The study utilised longitudinal financial data on 45 countries from 2000 to 2017 and employed static and dynamic panel model estimation. Findings – The results of the study suggest income diversification technique could improve financial stability throughout typical and crisis periods which validate portfolio management theory. The study also confirms the “too big to fail” hypothesis, extensive diversifying over an optimal range negatively impacts stability. Banks with a high level of liquidity, a higher operating efficiency and a larger deposit ratio become more resilient. Banking capital regulations found to be the appropriate monitoring instrument for lowering risks and maintaining stability. However, profitability was found to have a positive effect on bank risk-taking. The finding also suggests that political institutions have substantial, direct implications that are positively related to bank fragility. Macroeconomic factors such as gross domestic product (GDP) growth and inflation also influenced bank stability. Practical implications – This study has important implications for bankers, regulators and academicians concerned about the effect of diversification on a bank’s risk-taking or stability in developing economies. Originality/value – To the best of the author’s knowledge, this is the first study on Africa to analyse the quadratic influence of income diversification and the effects of political institutions on the level of bank stability.

This study examines the heterogeneity of foreign banks in the income diversification and performance nexus. We utilize annual bank data across 46 countries in Sub-Saharan Africa over the period 2011–2018 and find that increased income diversification improves banks performance, and the Global and Emerging banks perform better than the regional African and domestic banks. Regarding how different foreign banks benefit from income diversification, we find that Global banks benefit from diversification more than their counterparts operating in the region. The Emerging country banks outperform the African and domestic banks, while the local banks in the region benefit from income diversification more than the regional African banks. The results of this study suggest that the emerging banks and the regional African banks do not always exhibit similar features like the Global banks. The observations in this study make significant contribution to the literature by providing new insight into the non-homogeneity of foreign banks in the income diversification pendulum.

AbstractThis study explores the impact of revenue diversification and intellectual capital on the performance of sub-Saharan African banks. The study applied a panel regression technique to a data set containing information on 80 banks from 21 countries from 2000 to 2020. Secondary data was collected from the unconsolidated financial statements of banks in the Bank scope database, WDI database, and Refinitiv database. The study utilized the two-step system GMM and the dynamic panel threshold regression estimation methods to evaluate the hypotheses. The study revealed that income diversification has a negative and significant impact on the profitability of banks in Sub-Saharan Africa. The study also indicated that value-added intellectual coefficient (VAIC), human capital efficiency (HCE), and structural capital efficiency (SCE) have a positive and significant effect on the performance of banks; however, capital employed efficiency (CEE) has a negative and significant impact on banks’ profitability. The study also revealed that VAIC and HCE positively and significantly moderate the relationship between income diversification and the profitability of banks. SCE has a positive and insignificant moderating effect on the relationship between income diversification and bank performance. The study also revealed that CEE negatively and significantly mediates the relationship between income diversification and banks’ profitability. The threshold results also provide evidence that VAIC and HCE positively affect profitability; however, VAIC and HCE affect profitability above the threshold value. We also found evidence of a threshold effect of SCE below the threshold and a negative effect above the threshold value. The study also revealed that CEE negatively affects banks’ profitability at all levels. The detrimental impact of income diversification on the performance of sub-Saharan banks should be a concern for bank managers. The findings are crucial to comprehending the banking industry developments in Sub-Saharan Africa (SSA) from 2000 to 2020. The results provide important insights into the significance of the development of intellectual capital for the diversification of banking activities in SSA.

It has been generally agreed that income is a critical means of obtaining the resources required to sustain one's living standards. In the developed world, the increase in life satisfaction does not keep pace with the increase in income. In the developing world, the majority of the population is dependent on income from agriculture, and the incidence of poverty is high. As in other regions, Cambodia has been in the process of an agricultural transformation, and the incomes of agricultural families are becoming increasingly diverse. Household wellbeing is related to income diversification and positively impacts the quality of life of farmers in the farming communities of Tang Krasang and Tapang Trabek in Stung Chreybak. As a result, most farmers have found that the diversification of their income provides them with a sustainable livelihood through the expansion of dry season rice production, access to higher education, access to good health care, and the upgrading of houses. The objectives of this paper are to examine the life goals of rural people and to assess whether the diversification of income affects their wellbeing. Structured interviews were used to collect data along with field observation, interviews with key informants interviews, and focus group discussions on the income diversification of various stakeholders including representatives from authorities, local traders, and key relevant provincial department bodies. A total of 300 household families were selected for the questionnaires through multistage purposive and random-sampling techniques conducted in six villages, two communes, and two districts in Stung Chreybak. We found that income diversification is strongly associated with the attainment of external life goals and the sustainable livelihoods of farmers. This study recommends that supporting the importance of income diversification through the creation of model agricultural technologies and off-farm activities and the development of vocational training skills would allow more farmers to easily attain improved socio-economic wellbeing. [ABSTRACT FROM AUTHOR]