Cross-Industry Product Diversification and Contagion in Risk and Return: The Case of Bank-Insurance and Insurance-Bank Takeovers

We investigate the impact of domestic/international bancassurance deals on the risk-return profiles of announcing and non-announcing banks and insurers within a GARCH model. Bank-insurance deals produce intra- and inter-industry contagion in both risk and return, with larger deals producing greater contagion. Bidder banks and peers experience positive abnormal returns, with the effects on insurer peers being stronger than those on bank peers. Insurance-bank deals produce insignificant excess returns for bidder and peer insurers and positive valuations for peer banks. Following the deal, the bank bidders’ idiosyncratic (systematic) risk falls (increases), while insurance bidders exhibit a lower systematic risk and maintain their idiosyncratic risk.

Diversification, size and risk: The case of bank acquisitions of nonbank financial firms

We investigate the risk effects of bank acquisitions of insurance companies and securities firms between 1991 and 2012 using a newly constructed dataset of M&A deals. We examine risk changes before and after deal announcements by decomposing risk into systematic and idiosyncratic components. Subsequently, we investigate the relationship between risk and diversification by modelling the determinants of risks. We find that bank combinations with securities firms yield higher risks than combinations with insurance companies. Bank size is an important and consistent determinant of risk whereas diversification is not. Our results inform the continuing debate on diversification versus functional separation of bank activities.

Creating and sustaining mixed income communities: a good practice guide

A comprehensive guide to planning and consultation issues around mixed income communities. This guide explores how to create attractive and well-managed places that meet the needs of all sections of the community. Drawing on the latest research, and featuring nine case study areas, it includes detailed guidance on: developing a strategy and negotiating the planning process; good practice in masterplanning, design, layout and long-term financial viability; how stakeholders can collaborate effectively and ensure that local residents are fully involved at all stages; how barriers to the development of sustainable communities might be overcome. The guide explores all types of mixed income communities, from the diversification of single-tenure inner-city estates to greenfield development on the urban fringe.

Creating and sustaining mixed income communities in Scotland: a good practice guide

A good practice guide to creating and sustaining mixed income communities in Scotland. This guide explores how to create attractive and well-managed places that meet the needs of all sections of the community. Drawing on the latest research, and featuring 11 case studies from Scotland and England, it offers a comprehensive guide to the issues that need to be planned for and addressed. The book includes detailed guidance on: -Developing a strategy and negotiating the planning process; -Good practice in masterplanning, design, layout and long-term financial viability; -How stakeholders can collaborate effectively and ensure that local residents are fully involved at all stages; -How barriers to the development of sustainable communities might be overcome. The guide explores all types of mixed income communities, from the diversification of mono-tenure estates in inner city areas to greenfield development on the urban fringe.

Higher-order moments in the theory of diversifying and portfolio composition

This paper examines the role of higher-order moments in portfolio choice within an expected-utility framework. We consider two-, three-, four- and five-parameter density functions for portfolio returns and derive exact conditions under which investors would all be optimally plungers rather than diversifiers. Through comparative statics we show the importance of higher-order risk preference properties, such as riskiness, prudence and temperance, in determining plunging behaviour. Empirical estimates for the S&P500 provide evidence for the optimality of diversification.