Analyzing long-term average adjustment of financial ratios with spatial interactions

Maté‐Sánchez‐Val, Mariluz; Hernández, Fernando A. López; Lacambra, Jesús Mur

doi:10.1016/j.econmod.2012.03.001

Cited by 8 publications

(2 citation statements)

References 21 publications

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“…In spite of the fact that spatial analysis is given full appreciation in economic analyses (see e.g. Mate-Sanchez et al, 2012;Buckley, 2004), in the field of banking it can be encountered only rarely and is mostly owing to some recent work except perhaps the early study of Boufonou (1995). Jagric et al (2015) analyze macro and micro topological aspects in the history of European banking, whilst Nanda & Nicholas (2014) study territorial occurrence of bank bankruptcies during the Great Depression in the USA.…”

Section: Motivation and Literature Reviewmentioning

confidence: 99%

Spatial Aspect in Bank Branch Performance Management

Boďa

Zimková

2019

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In spite of the fact that both profitability and technical efficiency of bank branches are greatly influenced by the local environment in which they are located and operate, local environmental factors are scarcely incorporated in performance assessments undertaken by banks themselves. The paper stresses that localization of bank branches (i.e. their spatial aspect standing for all local socioeconomic environmental influences) is a significant factor that should be part of their performance assessment and demonstrates this for a commercial bank that runs a large retail branch network all over Slovakia. Through a case study of this Slovak bank, the paper aims to highlight the importance of the spatial aspect in explaining efficiency and economic results of bank branches, and to sketch a set of analytical procedures that may be adopted by commercial banks in internal performance assessment. Insights of geostatistics are employed in investigating the relationship between technical efficiency and profitability exhibited by the bank's branches and studying how this relationship is affected by the spatial aspect. Whereas technical efficiency stands for the voluminal dimension of a branch's performance, the profitability captures the monetary effects of the achieved performance position of a branch. It is found that for the bank's branches technical efficiency and profitability are closely related, and it is shown how this finding is relevant for bank branch performance management. A practical outcome of the analysis is that technical efficiency can be adopted by commercial banks in their internal rating systems of branch performance as a fully informative measure allowing them to assess managerial skills at a branch level. Technical efficiency scores may thus be utilized as a means of monetary stimulation of the best performing branches or in developing corrective policy strategies to manage the worst performing ones. Nonetheless, what is required is that the spatial aspect is sufficiently appreciated.

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Section: Motivation and Literature Reviewmentioning

confidence: 99%

Spatial Aspect in Bank Branch Performance Management

Boďa

Zimková

2019

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“…Mate-Sanchez et al (2012) researched the long-term average adjustment of corporate financial ratios. Maricica and Georgeta (2012) analyzed the business failure risk using financial ratios.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the Financial Ratios: The Case Study of the Famed Chemical Industry Firms in the US

Tsuji¹

2014

CSBM

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The objective of this paper is to explore the linkage between corporate financial conditions and the market valuation of the famed US chemical industry firms by the case study using financial ratio and market data. More concretely, we first conduct corporate financial ratio analyses including the Du Pont system analysis as to four well-known large chemical industry firms in the US. Our analyzing period is from the fiscal year of 1979 to 2012. After the financial ratio analyses for the above period, we further examine the relations between corporate financial conditions and the market valuation of the four US firms by using their stock price data after the end of the fiscal year of 2012. As a result, the corporate financial conditions of the four firms at the end of the fiscal year of 2012 appear to be adequately reflected in the subsequent stock prices in equity markets.

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Financial behavior of cooperatives and investor‐owned firms: An empirical analysis of the Spanish fruit and vegetable sector

2017

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A partial adjustment model was formulated to compare financial ratios between cooperatives and investor‐owned firms from a dynamic perspective. Empirical results from a sample of Spanish fruit and vegetable firms for the period between 2009 and 2012 reveal different adjustment processes of current, debt, and return on assets ratios between cooperatives and IOFs. We find significant differences between these firms, with slower adjustment rates for current and debt ratios in cooperatives. These findings may arise from the weakness associated with ownership structure in cooperatives, which reduces their adjustment processes compared to those of IOFs. The identification of differences in adjustment processes between cooperatives and IOFs may provide us with additional information regarding the specific management characteristics of these agri‐food firms, thus identifying those firms that are most dependent on external market conditions. [EconLit citations: C33, G30, Q13].

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Analyzing long-term average adjustment of financial ratios with spatial interactions

Cited by 8 publications

References 21 publications

Spatial Aspect in Bank Branch Performance Management

Spatial Aspect in Bank Branch Performance Management

Exploring the Financial Ratios: The Case Study of the Famed Chemical Industry Firms in the US

Financial behavior of cooperatives and investor‐owned firms: An empirical analysis of the Spanish fruit and vegetable sector

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