Measuring value creation by comparing the RAROC of an exposure (the return on risk capital) with a single institution-wide hurdle rate is inconsistent with the standard theory of financial valuation. We use asset pricing theory to determine the appropriate hurdle rate for such a RAROC...

In this era of tight competition among companies in running their business, companies' performance required to be assessed, observed, and evaluated to gain information about what needs to be done in order to develop further. As one of the most crucial business segment in the economy, banks and...

The study attempts to examine the impact of merger events on the stock price behavior of acquirer as well as the target shareholders in the Indian banking industry. OLS Market Model and Constant Market Model were applied to study a sample of (17) merger announcements both by Private and Public...

This study provides a framework for bankers in Brazil to implement Economic Value Added (EVA). Because most literature on EVA deals with Anglo-Saxon nonfinancial companies, this research provides an alternative way to calculate EVA for the banking sector. The study also covers all major issues...

Background: Starting from the limitations of different single-method approaches to measuring the organizational efficiency, the paper is focused on covering both the financial and non-financial factors of this concept by combining two methods, namely the Balanced Scorecard (BSC) and Data...