scholarly journals Improving Bank Market Performance

1970 ◽  
Vol 16 (2) ◽  
pp. 107-120
Author(s):  
Cheryl Frohlich ◽  
C. Bruce Kavan ◽  
A. Coskun Samli
Keyword(s):  
Business Strategy ◽  
Marketing Research ◽  
Net Income ◽  
Return On Assets ◽  
Processing Efficiency ◽  
Long Run ◽  
Information Research ◽  
Short Run ◽  
Major Shift ◽  
Marketing Information

The primary assertion of this paper is that banks need to redirect and balance the focus of their business strategy from that of an internal (efficiency oriented) to an external (effectiveness oriented) marketing research program in order to achieve full profit potential. The return on assets (ROA) of banks has only fluctuated from 0.93% in 1992 to 1.24% in 1997. As one alternative to the flat ROA, the industry has engaged in a merger mania and invested in internal, transaction-oriented information systems in order to reduce costs and increase the current net income (efficiency driven). However, this business strategy results in short-run profits to the exclusion of opportunities that may result in long-run profits. It is obvious from this flat ROA that banks have not been effective. Therefore, in order to avoid the danger of banks becoming atrophied, the organizational effectiveness component must be brought into the overall architecture of the bank's information system rather than the simple current emphasis on processing efficiency. This change in business strategy requires a fundamental paradigm shift in the manner in which banking executives view their industry. The business strategy must change from the narrow "provider of financial service" orientation to the broader "fulfiller of financial needs" orientation. A marketing information research system facilitating such a major shift in orientation is presented.

scholarly journals Do Non-Traditional Income, Size, and Growth Affect the Performance of the Banks?

2019 ◽  
Vol 2 (3) ◽  
pp. 58-66 ◽  
Author(s):  
Ramzan Ali ◽  
Zahir Zahid Butt ◽  
Sami Ullah Butt
Keyword(s):  
Statistical Technique ◽  
Vital Role ◽  
Policy Implications ◽  
Annual Data ◽  
Economic Data ◽  
Return On Assets ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run ◽  
The Impact

Purpose- The aim of this study is to examine the impact of non-traditional income, size and growth on the performance of the banks in big three economies of South Asia, as in the modern banking, non-traditional income plays a vital role by acting as a link between bank and its customers. Design- This study utilized the annual data over the period from 1996 to 2015, data were obtained from Federal Reserve Economic Data (FRED). This study examines the long-run as well as the short-run relationship among variables through the statistical technique of Panel ARDL. Findings- The findings of this study showed a significant and positive relationship between non-traditional income and return on assets as well as bank size and return on assets. While the association among the growth and return on assets is negative but significant. Policy Implications- Policy recommendation of this study suggests that banks should also explore new avenues of non-interest valued added services to their customers which will not only facilitate their customers also attract new customers which ultimately enhance the performance of the banks as well as the country.

scholarly journals Business Sustainable Competitiveness a Synergistic, Long-Run Approach of a Company's Resources and Results

2018 ◽  
Vol 13 (3) ◽  
pp. 26-44
Author(s):  
Mihaela Herciu ◽  
Claudia Ogrean
Keyword(s):  
Fortune 500 ◽  
Net Income ◽  
Multiple Discriminant Analysis ◽  
Return On Assets ◽  
Firm Level ◽  
Sustainability Index ◽  
Industry Group ◽  
Complex Concept ◽  
Long Run ◽  
Dow Jones Sustainability Index

Abstract Business sustainable competitiveness is a very complex concept. This complexity generates a variety of possibilities to define, to measure and to test it. The purpose of the paper is to develop the concept of businessness (for business sustainable competitiveness) by leveraging productivity, profitability, effectiveness and sustainability, at firm level. The interrelations between them, in terms of revenues per employee, return on assets, total assets turnover and Dow Jones Sustainability Index, were integrated into models/functions in order to develop, test and apply businessness. The article is about proposing functions (by using multiple discriminant analysis) in order to measure business sustainable competitiveness (businessness). The hypotheses and functions were tested using a sample of 500 companies (2000 observations) from Global Fortune 500. The results showed that there are direct and positive interrelations between the following items: number of employees, revenues, net income and total assets, but with different degree of correlations between groups. Therefore, it is very important to consider industry/group when conducting an analysis on business sustainable competitiveness.

E-Business Strategy and Firm Performance

2011 ◽  
pp. 56-66
Author(s):  
Jing Quan
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
New Economy ◽  
Business Leaders ◽  
Superior Performance ◽  
Electronic Business ◽  
Long Run ◽  
Short Run ◽  
Managerial Implications ◽  
Online Exchanges

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are prompted to invest heavily in e-business related activities such as supplier/procurement and online exchanges. Whether the investments have actually paid off for the firms remain largely unknown. Using the data on the top 100 e-business leaders compiled by InternetWeek, this chapter compares the leaders with their comparable counterparts in terms of profitability and cost in both short-run and long-run. The authors find that while the leaders have superior performance based on most of the profitability measurements, such superiority is not observed when cost measurements are used. Based on the findings, this chapter offers managerial implications accordingly.

E-Business Strategy and Firm Performance

2010 ◽  
pp. 389-399
Author(s):  
Jing Quan
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
New Economy ◽  
Business Leaders ◽  
Superior Performance ◽  
Electronic Business ◽  
Long Run ◽  
Short Run ◽  
Managerial Implications ◽  
Online Exchanges

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are prompted to invest heavily in e-business related activities such as supplier/procurement and online exchanges. Whether the investments have actually paid off for the firms remain largely unknown. Using the data on the top 100 e-business leaders compiled by InternetWeek, this chapter compares the leaders with their comparable counterparts in terms of profitability and cost in both short-run and long-run. The authors find that while the leaders have superior performance based on most of the profitability measurements, such superiority is not observed when cost measurements are used. Based on the findings, this chapter offers managerial implications accordingly.

scholarly journals Asset liquidity and bank profitability in South Africa

2013 ◽  
Vol 11 (1) ◽  
pp. 745-753
Author(s):  
Godfrey Marozva
Keyword(s):  
South African ◽  
Ordinary Least Squares ◽  
Return On Assets ◽  
Bank Profitability ◽  
Return On Equity ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Asset Liquidity ◽  
Short Run

This paper empirically analyses the relationship between asset liquidity and bank profitability for South African banks for the period between 1994 and 2011. The study employs Ordinary Least Squares (OLS) and the Autoregressive Distributed Lag (ARDL)-bound testing approach to examine the linkage between return on assets (ROA) and liquidity, and the nexus between return on equity (ROE) and liquidity to capture the short-run and long-run dynamics. The study observes that there is neither a significant relationship between ROE and liquidity nor a relationship between ROE and liquidity. These observations hold for both the short-run and long-run. Banks are recommended to embrace the asset liability framework in their analysis and management of liquidity as the asset only approach is insufficient and misleading

scholarly journals Owning, Using, and Renting: Some Simple Economics of the “Sharing Economy”

2020 ◽  
Vol 66 (9) ◽  
pp. 4152-4172 ◽  
Author(s):  
Apostolos Filippas ◽  
John J. Horton ◽  
Richard J. Zeckhauser
Keyword(s):  
Business Strategy ◽  
Durable Goods ◽  
Theoretical Work ◽  
Sharing Economy ◽  
Partial Decomposition ◽  
Individual Preferences ◽  
Long Run ◽  
Short Run ◽  
Unused Capacity

New Internet-based “sharing-economy” markets enable consumer-owners to rent out their durable goods to nonowners. We model such markets and explore their equilibria both in the short run, in which ownership decisions are fixed, and in the long run, in which ownership decisions can be changed. We find that sharing-economy markets always expand consumption and increase surplus, but may increase or decrease ownership. Regardless, ownership is decoupled from individual preferences in the long run, as the rental rates and the purchase prices of goods become equal. If there are costs of bringing unused capacity to the market, they are partially passed through, creating a bias toward ownership. To test our theoretical work empirically, we conduct a survey of consumers, finding broad support for our modeling assumptions. The survey also allows us to offer a partial decomposition of the bring-to-market costs, based on attributes that make a good more or less amenable to being shared. This paper was accepted by Joshua Gans, business strategy.

scholarly journals Effectiveness of Monetary Policy and the Growth of Industrial Sector in China

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 46-59
Author(s):  
Adebayo Augustine Kutu ◽  
Ntokozo Patrick Nzimande ◽  
Simiso Msomi
Keyword(s):  
Monetary Policy ◽  
Emerging Market ◽  
Unit Roots ◽  
Industrial Sector ◽  
Industrial Output ◽  
Monthly Data ◽  
Long Run ◽  
Short Run ◽  
Major Shift ◽  
Effectiveness Of Monetary Policy

China is viewed as the pillar of Emerging Market Economies (EMEs), deems to surpassed United State, and become the topmost industrialized country in the world with the prospects of major shift in the future world power. However, growth rate has slow down since the third quarter of 2014. Through this paper, we aim at investigating the impacts of monetary policy on industrial sector growth, and determine whether the long-run industrial sector growth in China can be foster by the effectiveness of monetary policy. It also examines the interrelationships among the variables employed and determines the steady-state relationships between industrial sector growth and monetary policy. Time-series econometric techniques such as unit roots, ARDL and ECM are employed to monthly data for the year 1994:1 to 2013:12.According to the empirical results derived, the effectiveness of monetary policy significantly affects industrial sector growth and the short-run impact of monetary policy on industrial output production is established.

Analysis of the changes in the Hungarian tax system and social transfers between 2010 and 2014 using a behavioural microsimulation model

2015 ◽  
Vol 37 (s1) ◽  
pp. 29-64
Author(s):  
Gergely Baksay ◽  
Balázs Csomós
Keyword(s):  
Low Income ◽  
Net Income ◽  
Microsimulation Model ◽  
Market Effects ◽  
Public Deficit ◽  
Long Run ◽  
Social Contributions ◽  
Short Run ◽  
Social Transfers ◽  
The Government

Using an updated microsimulation model developed earlier in the Hungarian National Bank, we estimate the macroeconomic, budgetary and labour market effects of government measures relating to taxes, social contributions, social transfers and gross wages since 2010. Compared to other studies, we take into account a more broad scope of measures, e.g. measures affecting gross wages and total labour cost directly. According to our estimations, the increase of the minimum wage and the so-called expected wage have fully compensated the low-income households of 2.3 million people already in the short-run for the loss of net income stemming from personal income tax and social contribution changes (especially for the abolition of tax credit).Taking into account social transfer reforms, the long-term macroeconomic effect of the measures is favourable: the level of employment may increase by approximately 2 percent, steady-state GDP level may go up by 1.5–2 and public deficit may decrease in the long run due to the government measures.

Carbon Performance, Company Financial Performance, Financial Value And Transmission Channel: An Analysis of South African Listed Companies

2021 ◽  
Author(s):  
Fortune Ganda
Keyword(s):  
Financial Performance ◽  
South African ◽  
Firm Value ◽  
Transmission Channel ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Long Run ◽  
Short Run ◽  
Carbon Performance

Abstract This article examines the influence of carbon performance on corporate financial performance and company financial value among South African listed firms for the period 2014 to 2018 using a two-step GMM panel process. The short-run findings show that carbon performance develops a positive and significant association with return on assets, firm value and Tobin’s Q. In the long run, the relationship between carbon performance and return on assets as well as firm value is significantly negative; however, the link with Tobin’s Q remains positively significant. Where carbon performance is employed as the dependent parameter, a positive, significant relationship is established with return on assets, firm value and Tobin’s Q in both the short and long run. The findings also demonstrate that carbon performance is a transmission channel whereby the debt-to-equity ratio, interest cover ratio, price to cash flow ratio and current ratio improve corporate financial performance and firm value in the long run. In the short run, the regression analysis frameworks produce mixed findings on whether carbon performance is a transmission channel. Policy recommendations are made based on the findings.

scholarly journals Effectiveness of Monetary Policy and the Growth of Industrial Sector in China

2017 ◽  
Vol 9 (3) ◽  
pp. 46
Author(s):  
Adebayo Augustine Kutu ◽  
Ntokozo Patrick Nzimande ◽  
Simiso Msomi
Keyword(s):  
Monetary Policy ◽  
Emerging Market ◽  
Unit Roots ◽  
Industrial Sector ◽  
Industrial Output ◽  
Monthly Data ◽  
Long Run ◽  
Short Run ◽  
Major Shift ◽  
Effectiveness Of Monetary Policy

China is viewed as the pillar of Emerging Market Economies (EMEs), deems to surpassed United State, and become the topmost industrialized country in the world with the prospects of major shift in the future world power. However, growth rate has slow down since the third quarter of 2014. Through this paper, we aim at investigating the impacts of monetary policy on industrial sector growth, and determine whether the long-run industrial sector growth in China can be foster by the effectiveness of monetary policy. It also examines the interrelationships among the variables employed and determines the steady-state relationships between industrial sector growth and monetary policy. Time-series econometric techniques such as unit roots, ARDL and ECM are employed to monthly data for the year 1994:1 to 2013:12.According to the empirical results derived, the effectiveness of monetary policy significantly affects industrial sector growth and the short-run impact of monetary policy on industrial output production is established.

Sign in / Sign up

Export Citation Format

Share Document