Title: The effects of revenue management via diversification strategy on Non-Commercial Bank Financial Institutions' productivity: empirical evidence from Malaysia

Authors: Fadzlan Sufian

Addresses: Planning and Research Department, CIMB Bank Berhad and Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia, CIMB Bank Berhad, 21st Floor, 6 Jalan Tun Perak, 50050 Kuala Lumpur, Malaysia

Abstract: By employing the Malmquist Productivity Index (MPI), this paper attempts to examine the effect of Non-Commercial Bank Financial Institutions (NCBFIs) revenue management strategy via diversification into the non-traditional activities during the period 2000-2004. To do so, the procedure is repeated twice. First, the non-traditional activities items are omitted from the analysis, and then they are added as an additional output variable. The results suggest that while the merchant banks| productivity is enhanced, the finance companies| productivity worsened. Multivariate analysis based on the GLS fixed and random effect estimators reinforces these findings.

Keywords: non-bank financial institutions; revenue management; productivity changes; MPI; Malmquist productivity index; Malaysia; diversification strategy.

DOI: 10.1504/IJRM.2008.020728

International Journal of Revenue Management, 2008 Vol.2 No.4, pp.376 - 401

Published online: 12 Oct 2008 *

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