Michael Jacobides, London School of Business
Michael Jacobides, London School of Business
Unpacking the Dynamics of Scope Transformation in US Banks, 1992-2006
Unpacking the Dynamics of Scope Transformation in US Banks, 1992-2006
26 Oct 201712:00 PM – 1:30 PM
Faculty and doctoral students only
Location:
Baker Library | Bloomberg Center 103
Organizer:
Unpacking the Dynamics of Scope Transformation in US Banks, 1992-2006
Nicola Cetorelli, Michael G. Jacobides, Sam Stern
Abstract: Using a novel database containing the time series details of the organizational structure of individual bank holding companies, this paper presents the first population-wide study of the transformation in business scope of US banks. Expanding scope has a negative impact on performance on average. However, we find that firms whose expansion keeps them closer to the prevailing “modal bank” are better off compared to those pursuing generic scope expansion. Moreover, we find that early expanders into particular activities benefit more, whereas late adopters, rather than benefitting by “fitting the norm,” lose out.