scholarly journals OPTIMIZING BALANCE SHEET FOR BANKS IN INDIA USING GOAL PROGRAMMING

2021 ◽  
Vol 6 (2) ◽  
pp. 81-101
Author(s):  
Jyoti Tanwar ◽  
Arun Kumar Vaish ◽  
NVM Rao
Keyword(s):  
Goal Programming ◽  
Asset Management ◽  
Ad Hoc ◽  
Low Cost ◽  
Balance Sheet ◽  
Secondary Data ◽  
Jel Classification ◽  
Annual Reports ◽  
Programming Technique ◽  
Liability Management

In earlier years, there was abundance of funds in banks in the form of demand and savings deposits. Hence, the focus of banks was mainly on asset management. But intense competition and volatility of interest rate due to banking reforms reduced the availability of low-cost funds and therefore, banks focused on liability management as well. These pressures call for structured and comprehensive measures and not just ad hoc action. This is how banks started to concentrate more on the management of both sides of the balance sheet. As a result, the concept of asset-liability management originated in India and introduced in the Indian banking industry since 1st April 1999 to administer the risk management aspects. This paper attempts to optimize assets and liabilities of banks using goal programming technique. Secondary data is collected from annual reports of Allahabad bank from 2010-2019 and RBI website is used for modelling. The findings show that in Allahabad bank, goal programming help in achieving optimization and increase profitability. The model incorporating constraints and set objectives. It model can support banks in decision making process, planning, budgeting, and forecasting. An attempt is made to use realistic goals and constraints after discussing with bank officials. JEL Classification Codes: C61, G21, G32.

scholarly journals MATHEMATICAL MODELING OF ASSET LIABILITY MANAGEMENT IN BANKS USING GOAL PROGRAMMING AND AHP

2020 ◽  
Vol 4 (4) ◽  
pp. 1-19
Author(s):  
Jyoti Tanwar ◽  
Arun Kumar Vaish ◽  
N V M Rao
Keyword(s):  
Goal Programming ◽  
Banking Sector ◽  
Programming Model ◽  
Balance Sheet ◽  
Annual Reports ◽  
Primary Data ◽  
Asset Liability Management ◽  
Liability Management ◽  
Priority Weights ◽  
Gp Model

Asset Liability Management has gained popularity in the banking sector. Earlier banks focused on asset allocation, but now the management of assets and liabilities is equally essential. Asset liability management targets the optimum distribution of funds in assets and managing liabilities so that banks can earn higher profits and minimize risk. In this paper, the optimization of assets and liabilities of Indian banks has been concentrated using mathematical models. Combining the Analytical Hierarchy Process (AHP) and Goal Programming (GP) model has been used to solve the optimization problem. AHP is a multi-criteria decision-making approach for deriving priority weights. Goal Programming is a linear programming model to solve complex issues having multiple objectives. In this paper, the primary data gathered from Bank senior managers have been analyzed using the AHP approach to derive weights for criteria. These weights are assigned to goals in goal programming to prioritize the goals. Secondary data on OBC bank is used in goal programming from 2010-2019 collected from OBC bank's annual reports and RBI websites. The findings show that OBC bank has the scope of improving its assets and liabilities position to increase its profit and minimize the risk. The model generates an optimum balance sheet that achieves the set goals and satisfies all the statutory and planning constraints. The same model can be useful for scheduled commercial banks in India with modifications concerning banks' targets and controls. The model developed in this paper is helpful for bank managers in planning and forecasting. AHP and GP's combined approach is unique in this paper, which uses experts' knowledge and applies it in the model. The model is created on the bank's realistic goals and constraints after carefully considering the issues faced by bank officials. The paper is limited to the Indian Banking system as other countries have different balance sheet structures and constraints.

scholarly journals DAMPAK MANAJEMEN ASET DAN MANAJEMEN UTANG TERHADAP LIKUIDITAS DAN PROFITABILITAS BUMN TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 6 (01) ◽  
Author(s):  
Nur Kamiliyah Firizq ◽  
Nekky Rahmiyati ◽  
Tri Ratnawati
Keyword(s):  
Data Collection ◽  
Asset Management ◽  
Secondary Data ◽  
Debt Management ◽  
Annual Reports ◽  
Company Performance ◽  
Operational Costs ◽  
Data Source ◽  
Performance Reports ◽  
The Impact

The purpose of this study was to determine the impact of asset management and debt management on the liquidity and profitability of SOEs listed on the Indonesia StockExchange for the period 2014-2017. This study use the object of research as 16 BUMNcompanies. The data source used is secondary data, data collection techniques in thisstudy are documentation of company performance reports on the Indonesia StockExchange and company annual reports. The results of the study show that therelationship between asset management and debt management is directly proportional.There is no significant impact of asset management on liquidity and profitability becausethe asset management on 2017 has increased while profitability and liquidity has fallenthis is due to the company's large operational costs financed by debt. Debt managementfor liquidity and profitability has an impact on decreasing liquidity and profitability whendebt management rises. Keywords: Liquidity, Asset Management, Debt Management and Profitability

scholarly journals Financial and Operating Working Capital: Unraveling Obscured Portion of Balance Sheet

2020 ◽  
Vol 6 (2) ◽  
Author(s):  
Kashif Saeed ◽  
Areeba Khan
Keyword(s):  
Cash Flow ◽  
Business Performance ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Secondary Data ◽  
Annual Reports ◽  
Working Capital ◽  
Cash Conversion Cycle ◽  
Internal Cash Flow ◽  
Business Practitioners

ABSTRACT Purpose- The purpose of this study is to provide a new obscured aspect of financial working capital in working capital management, and investigate the association between financial and operating working capital with business performance. This paper also examines the interacting effect of net cash flow on this relationship. The current study introduces a modification in cash conversion cycle (CCC) by taking concealed trade advance payments. Design/methodology/approach- This study employs fixed effect regression model, covering a sample of Automobile sector companies, listed at Pakistan Stock Exchange (PSX) for the period of fourteen years from 2005 to 2018. Secondary data is collected from companies’ financial annual reports, PSX website, and Balance sheet analysis of State Bank of Pakistan (SBP). The study is explanatory and deductive in nature. Financial working capital (FWC) and new measure of operating working capital (OWC) i.e. modified cash conversion cycle (mCCC) is introduced & empirically tested with 252 firm-year observations. Findings- The regression results shows, a convex association between OWC & FWC, with business performance, in dearth of internal cash. However, after taking interacting effect of internal availability of cash, only FWC relation has become concave. The result also shows that mCCC provides a more realistic view of OWC. Research limitations/implications- This study has considered, concealed trade prepayments only, further research could include other components in mCCC. Moreover micro, macro factors and status of the economy such as depression or boom may also affect the results of the research. The findings suggest that managers should separately deal operating & financial working capital. Firms’ performance can be enhanced, if Finance Manager Take account internal cash of the firm. In case of deficiency (sufficiency) of it, he should work to decrease (increase) the investment amount in operating working capital (financial working capital). Overall, the results will be helpful to the financial experts and business practitioner in analyzing, and utilization of their resources. Originality/value- This study adds a new dimension in working capital by separating it into operating and financial working capital.  The study also offers insights into the new knowledge of extension in CCC, role of concealed advance payments and internal cash flow, for class teachers and business practitioners. It will also describe the new avenues for further research in this field.    Key Words:  Financial working capital, Operating working capital, Trade advanced payments and modified cash conversion cycle (mCCC).

scholarly journals The Determinants of Bank Profitability Empirical Evidence from Vietnamese Commercial Banks in The Periods Of 2013 To 2018

2020 ◽  
Vol 15 ◽  
pp. 176-184
Author(s):  
Dan Ngoc Minh Nguyen ◽  
Anh Vu
Keyword(s):  
Commercial Banks ◽  
Quantitative Methods ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Secondary Data ◽  
Analysis Data ◽  
Financial Statement ◽  
Annual Reports ◽  
Panel Model ◽  
Data Tables

This research concentrates on the determinants of the profitability of the Vietnamese Commercial Banks. Both internal and external variables regarding the profitability of commercial bank sector will be focused in the analysis. Data over the period of 2013 to 2018 for 29 Vietnamese Commercial Banks[i] is obtained from via Stock Exchange or media. Fixed effect panel model are used to analyze the determinants of the profitability. By using this, we ensure for the effectiveness of the test result in terms of hypothesis along with size in order to get consistent results. The research is based on the scientific approach of quantitative methods to solve the problems posed, practical and effective service for the completion of the research purpose. The secondary data collected from the worldbank.org, vietdata.vn and annual reports (financial statement, balance sheet, etc.) of Vietnamese commercial banks in the 2013-2018 period to create asymmetric data tables will be processed on STATA software.

scholarly journals Competitor Accounting (CA) of Joint Venture Banks

2019 ◽  
Vol 3 (3) ◽  
pp. 109-122
Author(s):  
Prakash Pokharel
Keyword(s):  
Joint Venture ◽  
Ad Hoc ◽  
Secondary Data ◽  
Strategic Decision ◽  
Annual Reports ◽  
Senior Managers ◽  
Strategic Management Accounting ◽  
Managerial Perception ◽  
Management Issues ◽  
Structured Questionnaire

In order to facilitate the collection and analysis of accounting information related with the competitor in the context of strategic management accounting, the term competitor accounting has been developed. However, no empirical results are available as to the extent to which such information influences strategic decision behavior. Main purpose of this study is to explore the effect of competitor accounting on performance of the joint venture banks, and compare the effectiveness of competitor accounting between those banks. For this structured questionnaire survey with 133 staffs of the concerned banks as well as unstructured interview with 4 senior managers were conducted. Various published and unpublished reports like annual reports of the concerned banks were also used. From the study it is found out that levels of CA formalised application appear limited, especially when compared with a widely held managerial perception that significant benefits could derive from CA. The CA practices noted were conducted in an unstructured and ad hoc manner. CA does not have any effect on performance of Nepalese joint venture banks because of not applying any formalised CA application. The study had /some of the limitations generally associated with a qualitative as well as quantitative study. These limitations include the degree of subjectivity that is invoked when researchers interpret qualitative data, scarcity of various resources, and accuracy of secondary data. The study clarifies the notion of CA and provides an outline of CA management issues arising in the context of a joint venture banks. An outline is provided of those parts of a bank operation that are most likely to be more active in CA, together with empirically informed suggestions with respect to CA uses in a joint venture banks.

DAMPAK MANAJEMEN ASET DAN MANAJEMEN UTANG TERHADAP LIKUIDITAS DAN PROFITABILITAS BUMN TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 6 (01) ◽  
Author(s):  
Nur Kamiliyah Firizq ◽  
Nekky Rahmiyati ◽  
Tri Ratnawati
Keyword(s):  
Data Collection ◽  
Asset Management ◽  
Secondary Data ◽  
Debt Management ◽  
Annual Reports ◽  
Company Performance ◽  
Operational Costs ◽  
Data Source ◽  
Performance Reports ◽  
The Impact

The purpose of this study was to determine the impact of asset management and debt management on the liquidity and profitability of SOEs listed on the Indonesia StockExchange for the period 2014-2017. This study use the object of research as 16 BUMNcompanies. The data source used is secondary data, data collection techniques in thisstudy are documentation of company performance reports on the Indonesia StockExchange and company annual reports. The results of the study show that therelationship between asset management and debt management is directly proportional.There is no significant impact of asset management on liquidity and profitability becausethe asset management on 2017 has increased while profitability and liquidity has fallenthis is due to the company's large operational costs financed by debt. Debt managementfor liquidity and profitability has an impact on decreasing liquidity and profitability whendebt management rises. Keywords: Liquidity, Asset Management, Debt Management and Profitability

scholarly journals Pengukuran Kinerja Perbankan Syariah Berbasis Maqashid Syariah Index Bank Syariah di Indonesia : Abdul Majid Najjar Versus Abu Zahrah

2019 ◽  
Vol 6 (02) ◽  
pp. 111-126
Author(s):  
Rudi Setiyobono ◽  
Nurmala Ahmar ◽  
Darmansyah
Keyword(s):  
Financial Performance ◽  
Performance Appraisal ◽  
Secondary Data ◽  
Jel Classification ◽  
Annual Reports ◽  
Islamic Banking ◽  
Performance Measurements ◽  
Financial Reports ◽  
Index Approach ◽  
Quantitative Descriptive

ABSTRACT This study aims to analyze the performance of Islamic Banking (iB) in Indonesia through the maqashid shariah index approach. Performance appraisal on Islamic Banking (iB) is generally done through financial performance measurements without including non-financial performance measurements. This study measures the performance of Islamic Banking (iB) through a broader approach to sharia  principles by using the concept of maqashid shariah index proposed by Abu Zahrah and Abdul Majid Najjar. This type of research is quantitative descriptive. The object of the research conducted is Bank Umum Syariah (BUS) that operate nationally in Indonesia and are registered with Otoritas Jasa Keuangan (OJK). The type of data used is secondary data in the form of financial reports and annual reports obtained from the official websites of each bank Period 2014 to 2018. By using the maqashid shariah index and the SAW (Simple Additive Weigting) method, it can be concluded that the performance value of MSI of Bank Muamalat Syariah Indonesia (BSMI)  in 2014-2018 approach to the concept of Abu Zahrah on average was 35.64%, while the performance value of MSI of BMSI in the same periode  with the AM Najjar concept approach the average is 30.56%. ABSTRAK Penelitian ini bertujuan untuk menganalisis kinerja Perbankan Syariah (iB) di Indonesia melalui pendekatan maqashid shariah index. Penilaian kinerja Perbankan Syariah (iB) umumnya dilakukan melalui pengukuran kinerja secara keuangan tanpa mengikutsertakan pengukuran kinerja non keuangan. Penelitian ini mengukur kinerja Perbankan Syariah (iB) melalui pendekatan prinsip-prinsip syariah secara lebih luas dengan menggunakan konsep maqashid shariah index yang dikemukakan oleh Abu Zahrah dan Abdul Majid Najjar.Jenis penelitian yang digunakan adalah deskriptif kuantitatif. Objek dari penelitian yang dilakukan adalah bank umum syariah (BUS) yang beroperasi secara nasional di Indonesia dan terdaftar pada otoritas jasa keuangan (OJK. Jenis data yang digunakan adalah data sekunder berupa laporan keuangan dan laporan tahunan dari situs resmi  masing masing bank Periode tahun 2014 sampai 2018. Dengan menggunakan  maqashid shariah index dan metode SAW (Simple Additive Weigting), dapat disimpulkan bahwanilai Kinerja MSI Bank Muamalat Syariah Indonesia (BMSI) tahun 2014-2018 pendekatan konsep Abu Zahrah rata-rata adalah sebesar 35.64%.  Sedangkan nilai kinerja MSI periode yang sama dengan pendekatan konsep AM Najjar rata-rata adalah sebesar 30.56%. JEL Classification: M41, Z12

scholarly journals Pengukuran Kinerja Perbankan Syariah Berbasis Maqashid Syariah Index Bank Syariah di Indonesia : Abdul Majid Najjar Versus Abu Zahrah

2019 ◽  
Vol 6 (02) ◽  
pp. 111-126
Author(s):  
Rudi Setiyobono ◽  
Nurmala Ahmar ◽  
Darmansyah
Keyword(s):  
Financial Performance ◽  
Performance Appraisal ◽  
Secondary Data ◽  
Jel Classification ◽  
Annual Reports ◽  
Islamic Banking ◽  
Performance Measurements ◽  
Financial Reports ◽  
Index Approach ◽  
Quantitative Descriptive

ABSTRACT This study aims to analyze the performance of Islamic Banking (iB) in Indonesia through the maqashid shariah index approach. Performance appraisal on Islamic Banking (iB) is generally done through financial performance measurements without including non-financial performance measurements. This study measures the performance of Islamic Banking (iB) through a broader approach to sharia  principles by using the concept of maqashid shariah index proposed by Abu Zahrah and Abdul Majid Najjar. This type of research is quantitative descriptive. The object of the research conducted is Bank Umum Syariah (BUS) that operate nationally in Indonesia and are registered with Otoritas Jasa Keuangan (OJK). The type of data used is secondary data in the form of financial reports and annual reports obtained from the official websites of each bank Period 2014 to 2018. By using the maqashid shariah index and the SAW (Simple Additive Weigting) method, it can be concluded that the performance value of MSI of Bank Muamalat Syariah Indonesia (BSMI)  in 2014-2018 approach to the concept of Abu Zahrah on average was 35.64%, while the performance value of MSI of BMSI in the same periode  with the AM Najjar concept approach the average is 30.56%. ABSTRAK Penelitian ini bertujuan untuk menganalisis kinerja Perbankan Syariah (iB) di Indonesia melalui pendekatan maqashid shariah index. Penilaian kinerja Perbankan Syariah (iB) umumnya dilakukan melalui pengukuran kinerja secara keuangan tanpa mengikutsertakan pengukuran kinerja non keuangan. Penelitian ini mengukur kinerja Perbankan Syariah (iB) melalui pendekatan prinsip-prinsip syariah secara lebih luas dengan menggunakan konsep maqashid shariah index yang dikemukakan oleh Abu Zahrah dan Abdul Majid Najjar.Jenis penelitian yang digunakan adalah deskriptif kuantitatif. Objek dari penelitian yang dilakukan adalah bank umum syariah (BUS) yang beroperasi secara nasional di Indonesia dan terdaftar pada otoritas jasa keuangan (OJK. Jenis data yang digunakan adalah data sekunder berupa laporan keuangan dan laporan tahunan dari situs resmi  masing masing bank Periode tahun 2014 sampai 2018. Dengan menggunakan  maqashid shariah index dan metode SAW (Simple Additive Weigting), dapat disimpulkan bahwanilai Kinerja MSI Bank Muamalat Syariah Indonesia (BMSI) tahun 2014-2018 pendekatan konsep Abu Zahrah rata-rata adalah sebesar 35.64%.  Sedangkan nilai kinerja MSI periode yang sama dengan pendekatan konsep AM Najjar rata-rata adalah sebesar 30.56%. JEL Classification: M41, Z12

FINANCIAL DECISION MAKING WITH REFERENCE TO CAPITAL STRUCTURE ANALYSIS

Paradigm ◽  
1997 ◽  
Vol 1 (1) ◽  
pp. 73-78
Author(s):  
J.K. Sharma ◽  
Dinesh K. Sharma
Keyword(s):  
Decision Making ◽  
Capital Structure ◽  
Goal Programming ◽  
Cost Of Capital ◽  
Empirical Relationship ◽  
Balance Sheet ◽  
Income Taxes ◽  
Programming Technique ◽  
Financial Decision Making ◽  
Financial Decision

In the present paper goal programming technique has been developed to test the empirical relationship between capital structure and cost of capital, financial leverage earning before income taxes (EBIT) and risk. The study was carried out by using balance sheet of the year 1989-90 of nine different companies in India.

scholarly journals The Impact of Globalization on European Airline Market

Ekonomika ◽  
2021 ◽  
Vol 100 (1) ◽  
pp. 117-138
Author(s):  
Anastasiia Kuz ◽  
Algirdas Miskinis
Keyword(s):  
Financial Performance ◽  
Airline Industry ◽  
Quantitative Research ◽  
Low Cost ◽  
Panel Data Analysis ◽  
Secondary Data ◽  
Modern Society ◽  
Annual Reports ◽  
The Impact ◽  
The Relationship

Airline industry is very important for modern society as the biggest player in the globalization process by connecting regions, promoting global trade and tourism, facilitating economic and social development. However, here is a lack of research on relationship between globalization and airline industry in Europe. It remains unclear how to measure the impact of globalization on performance of airline companies and industry. The article aims at investigation of the impact of globalization on operational and financial performance of European airlines before pandemics.The authors applied a nonexperimental quantitative research design to analyze the relationship between independent globalization variables (level of globalization in Europe, globalization opportunity, globalization threat) and dependent airlines’ operational and financial performance indicators. Research is done using secondary data from annual reports of 19 European airlines members of European Common Aviation Area (ECAA). The panel data analysis was applied for 2007–2017 with multiple regression analysis using STATA. The results show that globalization exerts a significant positive effect on operational performance. On financial performance only revenue per passenger kilometers is positively influenced by globalization. Globalization affects low-cost airlines and full-service airlines performance differently.

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