Shareholder Value in Banking

Sustainable shareholder value is a main strategic objective for financial institutions. This text provides an analytical assessment of shareholder value creation, providing a framework for analyzing theory, and presenting empirical investigations. It analyzes the importance of drivers in creating value and develops a new measure of bank efficiency. An Increasing Number Of The World's Largest Banks Now Have More Activities Outside Their Home Country Than Withinches But What Do We Know About The Effects Of Internationalization, And What Is A Successful Business Model For The Future? This Book Explores The Formulation, Implementation And Evaluation Of Internationalization Strategies In Banking. The International Strategies Of The World's Leading Banks In Eight Countries Are Examined Between 1980 And 2004, Strategic Patterns Are Identified And The Effects On Profitability, Stability And Shareholder Performance Are Analysed. The Results Are Sobering. Increasing Profitability And Shareholder Return Through Internationalization Turns Out To Be Extremely Challenging. Only A Few Banks Are Able To Turn International Banking Activities Into A Success. With The Ongoing Cross-border Consolidation In The Banking Industry, This Book Is An Important Contribution To The Internationalization Debate And A Must-read For Bank Management, Regulators And Shareholders. Banking Since The 1980s: Challenges And Issues -- International Banking: A Theoretical Framework -- The World's Largest Banks -- Internationalization Patterns -- Internationalization Strategies -- Performance And Shareholder Wealth -- Competitive Future Internationalization Strategies. Alfred Slager. Includes Bibliographical References (pages 213-218) And Index. Creating sustainable shareholder value is currently recognised as one of the main strategic objectives for financial institutions. Generating stable shareholder value growth requires an intense focus on delivering benefits to customers in the most efficient way, hiring and retaining a motivated workforce, maintaining excellent supplier relationships, and being a good corporate citizen in each of the company's local communities. This book provides a detailed analytical assessment of shareholder value creation in banking. The first part of the text provides a framework for analysing shareholder value theory by discussing how shareholder value can be defined, if it can be considered a valid strategic objective for banks, how shareholder value can be measured and how it can be created. The second part of the text present various empirical investigations in to order to measure shareholder value and some of its drivers. The final part analyses the importance of these drivers in creating shareholder value and also briefly develops a new measure of bank efficiency. This is the most extensive coverage on shareholder value in banking to date and will be extremely valuable to both financial sector practitioners and academics in the field of banking and finance Securities exchanges play a significant role in macroeconomics. They engage in the allocation process, which assures that savings are allocated to the most profitable investment opportunities. But what are the forces driving the supply side, namely, the services offered by exchanges? It is not just a matter of market microstructure and the rules governing the price discovery. Rather, it embraces a much wider perspective involving the balance of interests of multiple stakeholders, the competitive strategies of exchanges and other platform operators and the impact of regulation. This book provides an economic analysis of the stock exchange industry. It draws on theories from micro- and industrial economics to provide a detailed analysis of the industry structure, the strategic behaviour of key participants and a methodological framework for assessing the performance of stock exchanges ..." Front Matter....Pages i-xvi Why Study Shareholder Value Creation in European Banking?....Pages 1-8 Economic Objectives of Banks....Pages 9-37 Shareholder Value: a Literature Review....Pages 38-94 How Banks Create Shareholder Value....Pages 95-145 Bank Performance Measures and Shareholder Value....Pages 146-193 Measuring Shareholder Value Drivers in Banking....Pages 194-255 Determinants of Shareholder Value in European Banking and Shareholder Value Efficiency....Pages 256-288 Conclusions....Pages 289-294 Back Matter....Pages 295-342 An account of the principal phases in the development of the English banking system, and an analysis of the financial structure of the economy of the UK. The book focuses in detail on the regulatory and supervisory aspects of the UK banking system, and the interactions between the structural aspects of the banking and supervisory system.