<scp>Asset‐Liability</scp> Management and bank profitability: Statistical cost accounting analysis from an emerging market

Owusu, Freeman Brobbey; Alhassan, Abdul Latif

doi:10.1002/ijfe.1860

Cited by 19 publications

(24 citation statements)

References 30 publications

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“…The common objective measures of BS include the number of employees and customers; survival and continuation as opposed to closure; market share; performance which in turn is assessed based on profitability and income and the total value of assets [31,34,[42][43][44][45][46][47]. Subjective measures of BS refer to the feeling the entrepreneur has towards his/her overall situation, such as the perception of personal fulfillment, social recognition and contribution, goals' achievement, life satisfaction, and family business balance [48,49].…”

Section: Literature Review and Hypotheses Development 21 Business Success (Bs) And The Theory Of Resourced-based View Of The Firmmentioning

confidence: 99%

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

et al. 2021

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The proponents of the entrepreneurial motivation dichotomy have argued that opportunity-driven entrepreneurs are more likely to succeed and sustain in entrepreneurship, unlike people who start-up businesses out of necessity. However, disagreement still exists on why and under which conditions the former might outperform the latter. This research contributes to this debate by examining the mediation role of psychological capital in the relationship between entrepreneurial motivation and business success among youths. This study relied on a random sample of 295 young entrepreneurs surveyed from Bukavu in the Democratic Republic of the Congo (DRC). We applied partial least squares to analyze the hypothesized relationships. Evidence for the positive effect of opportunity-led motivation on psychological capital was found, but the findings did not support any direct effect of entrepreneurial motivation on business success. Instead, psychological capital positively and significantly mediated the relationship between entrepreneurial motivation and business success. This paper makes a distinctive new contribution to the understanding of the intriguing and controversial entrepreneurial motivation dichotomy—a business success relationship. To this end, we have found out that opportunity entrepreneurs have 3% more chance of succeeding in businesses compared to necessity entrepreneurs, because the former outperform the latter by 4% in the dimensions of psychological capital. This paper has new policy implications, as it reveals the great importance of psychological capital in promoting business success, thus reducing unemployment among youths, and offers tips from which psychological capital can be built or improved.

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Section: Literature Review and Hypotheses Development 21 Business Success (Bs) And The Theory Of Resourced-based View Of The Firmmentioning

confidence: 99%

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

et al. 2021

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“…Then fuzzy decision (By Bellman and Zadeh) based on minimum operator by Owusu and Alhassan [18] the problem (25) will take the form…”

Section: Fuzzy Programming Techniques For a Monlpmentioning

confidence: 99%

A Multi-Objective Risk Return Trade off Models for Banks: Fuzzy Programming Approach

Chaudhury¹,

Islam²

2021

MMEP

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The main focus of banking sector is on the risk management. Asset liability management (ALM) is one of the key processes to manage the risks. The objective of this paper is to develop a multi-objective asset liability optimization model for banks with the maximization of market value of equity and minimization of duration gap as the objective function. Several liquidity ratios, concept of duration and convexity are considered to manage the risk properly. Interest rate risk and liquidity risk are two major considerations in both the regulation and management of a bank. As we know that, with the fluctuation of the market interest rate, the market value of assets and liabilities of a bank changes and that affects a change in owner’s equity. In order to overcome such type of situation here we will use the concept of duration and convexity to manage the interest rate risk. In case of liquidity risk the shortage of liquidity may also put that bank in risk and simultaneously it is very crucial to manage the cash flow properly. So here we will use some major liquidity ratios to manage the liquidity risk. We will take the help of fuzzy programming technique to solve our model properly. A numerical example is given to illustrate our model by considering a hypothetical bank balance sheet. Also we will compare the result obtained by fuzzy technique with result obtained by a non fuzzy based technique.

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“…Apart from ROE, Price to Book Value (PBV) must be considering, as well as its value also affects company profits. (Owusu & Alhassan, 2021;Uly, 2020) ROE is one of the profitability ratios that has often used in analyzing company performance for investors. The profit in question is net income.…”

Section:  T Testsmentioning

confidence: 99%

“…Thus, ROE has defined as an indicator measuring the effectiveness of management in managing capital to generate profits. The ROE measurement scale is the same as ROA, which is in the form of a percentage (Owusu & Alhassan, 2021;Pennacchi & Santos, 2021;Uly, 2020).…”

mentioning

confidence: 99%

Contraction of Capital Investment in Retail Trade Sub-Sector Companies on the Indonesia Stock Exchange

Andy

Hengky

2021

BER

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This study aims to compare the investment contraction in the retail trade sub-sector on the Indonesia Stock Exchange (IDX). This study examines the effect of profitability as measured by ROE on capital structure as measured by DER in sub-sector companies in IDX during 2016-2020. This type of research uses verification research with explanatory survey method and sample method of a purposive-sampling in which there are 18 samples of retail company sub-sectors. Methods of data analysis using panel data regression with the results: Profitability has a negative and significant effect on capital structure.

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Asset‐Liability Management and bank profitability: Statistical cost accounting analysis from an emerging market

Cited by 19 publications

References 30 publications

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

A Multi-Objective Risk Return Trade off Models for Banks: Fuzzy Programming Approach

Contraction of Capital Investment in Retail Trade Sub-Sector Companies on the Indonesia Stock Exchange

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