Corporate Diversity in Financial Services: Efficiency, Resilience and Stability

Christine Oughton

Recent research (Goodhart and Wagner, 2012, Haldane and May, 2011 and Kay (2011, 2012) has highlighted the impact of diversity on systemic stability and market efficiency.  In particular, Haldane and May (2011) and Beale et al (2011) explore the impact of bank diversification on competition, resilience and stability.  Work in this area has also begun to shape policy, for example, the UK Coalition Government made a commitment in 2010 to foster diversity in financial services and promote a variety of corporate forms, including mutual; which begs the question of how we measure corporate diversity?

This paper extends the theoretical and empirical research in this area by providing a measure of diversity in financial services and looking at the role of corporate diversity and associated differences in balance sheet strategies and risk taking, on efficiency, financial system resilience and stability.

Christine Oughton is Professor of Management Economics  at the School of Finance and Management (FAM) at SOAS, University of London. She received her PhD in Economics from the University of Cambridge. Before joining SOAS she was Professor of Economics and Management, University of Bolzano, Italy (where she is now Visiting Professor) and Professor of Management at Birkbeck, University of London. In 2006 she was made an Academician of the Academy of Social Sciences. Her research focuses on industrial organisation, innovation, regional economic performance and corporate governance. She is currently researching the measurement and effects of corporate diversity in financial services. She currently serves on Academic Board, SOAS Governing Body and the Resources and Planning Committee.