A capital budgeting stochastic simulation model applied in the banking industry
Article Abstract:
Keywords: Accounting research, Banking, Simulation, Capital budgeting, Risk At present, most academic research in management science, which is based on quantitative modelling, is confined broadly to three main areas: (1) the development of new analytical techniques, (2) the investigation of the mathematical rigour of existing analytical methods, and (3) the actual application of the available analytical approaches to the solution of real problems. On the other hand, Chansa and Mount-Campbell have concluded that future research in capital budgeting should concentrate on getting high quality cash flow information of projects. The present article applies stochastic simulation to develop a capital budgeting model for quantifying risk and uncertainty inherent in the establishment of a new bank branch.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 2000
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The re-internationalization of banking and the financial system
Article Abstract:
An analysis of historical economic data supports the theory that the globalization of the banking and finance industry is not a new occurence, but a reimposition of conditions present prior to the occurence of World War I. Evidence supports this theory, with foreign investments approaching the ratio of foreign investments to GDP prior to the war. Much of the claims of the globalization of the banking and finance industry is made only on the basis of technological changes which means faster financial transactions across borders.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1997
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The efficiency of the French banking industry
Article Abstract:
An evaluation of the annual accounting data of French corporate, mutual and savings banks reveals that these banks can reduce average costs by 8% by increasing their size to reach their maximum efficiency. Also, the study shows that the X-efficiency of French banks ranges from 70%-90%. Estimates show that X-inefficiency seems to dominate scale efficiency and that the two inefficiencies seem to be of similar magnitude if the 25%/75% truncated value is retained.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1997
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