Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/emerald-publishing/risk-adjusted-performance-measurement-and-capital-allocation-for-HmTO8ztTJK
References (4)
-
R. Merton, A. Perold (1993)
THEORY OF RISK CAPITAL IN FINANCIAL FIRMSJournal of Applied Corporate Finance, 6
-
Kenneth Froot, J. Stein (1996)
Risk Management, Capital Budgeting and Capital Structure Policy for Financial Institutions: An Integrated ApproachNBER Working Paper Series
-
N. Stoughton, J. Zechner (2004)
Optimal Capital Allocation Using RAROC and EVA -
W. Rogerson (1997)
Intertemporal Cost Allocation and Managerial Investment Incentives: A Theory Explaining the Use of Economic Value Added as a Performance MeasureJournal of Political Economy, 105
- Publisher
- Emerald Publishing
- Copyright
- Copyright © 2000 MCB UP Ltd. All rights reserved.
- ISSN
- 0307-4358
- DOI
- 10.1108/03074350010766576
- Publisher site
- See Article on Publisher Site
Abstract
Compares four risk‐adjusted performance measures and explains their importance, to banking in particular. Applies the risk‐adjusted return on capital (RAROC) measure to five product classes at several branches of an international bank for six months, finds considerable differences between required and actual RAROCs and investigates the reasons why. Discusses both exogeneous factors (e.g. trading terms). Believes that banks can improve their internal capital markets by using risk‐adjusted performance measurement.
Journal
Managerial Finance – Emerald Publishing
Published: Mar 1, 2000
Keywords: Accounting research; Risk; Performance measurement; Capital budgeting; Banking