Financial Lease Analysis: Consistent and Inconsistent Approaches
Article Abstract:
Lease analysis methods abound as they are not necessarily simple matters. The method most likely chosen appears to be the Myers, Dill and Bautista (MDB) approach. However, there are still many practitioners involved in leasing who do not follow that approach. Some of these analysis methods are described and comparisons made in tables. When analyzing these approaches, the facts show that, with leasing, as well as with purchasing, the lessee (or borrower) is responsible and has all the risks of ownership. The lessor does not. Leasing also carries the same financial risk to the lessor as a loan does to a buyer. Using the MDB method, an inconsistency within the method is sighted - neither leasing or purchasing is favored. When leasing companies advertise leasing and use the above methods of analysis, cash is overemphasized. When the traditional liability/asset analysis is used, there is no consistent winner - leasing and purchasing are equally preferred.
Publication Name: Accounting and Finance
Subject: Business
ISSN: 0810-5391
Year: 1983
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Cost efficiency in Australian non-bank financial institutions: A non-parametric approach
Article Abstract:
Procedures for evaluating cost efficiency at non-bank financial institutions are presented. The two-stage scheme employed begins with data envelopment analyses of technical, allocative and cost-efficiency indices at 200 sample credit unions and finishes with limited dependent variable regression analysis techniques that relate efficiency scores to financial statements. Results of the first stage indicate that credit unions averaged 30 percent inefficiency compared to what has been considered best practice, while the second-stage results indicate that several additional factors influence cost efficiency, including proportion of non-interest income, expenditures on IT and marketing, commercial lending activities and association membership.
Publication Name: Accounting and Finance
Subject: Business
ISSN: 0810-5391
Year: 2000
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Influence of weather on New Zealand financial securities
Article Abstract:
A study is conducted in Auckland and Wellington cities in New Zealand, to analyze the influence of weather on the bank interest rates, government bonds and return of stock indices.
Publication Name: Accounting and Finance
Subject: Business
ISSN: 0810-5391
Year: 2005
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