Allocate Capital and Measure Performances in a Financial Institution

Thomas S. Y. Ho

Financial Markets, Institutions & Instruments, 1999, vol. 8, issue 5, 1-23

Abstract: This paper provides a model for allocating capital and measuring performances for financial institutions. The methodology relates the economic valuation of the balance sheet to the market value of the firm. In so doing, each business unit is evaluated on an economic basis, and the capital allocated to these units is related to the risk premiums that the market demands. The paper's results have broad applications for corporate managers, risk managers, and other market participants in managing financial institutions to increase shareholders’ value.

Date: 1999
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/1468-0416.00030

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:finmar:v:8:y:1999:i:5:p:1-23

Access Statistics for this article

More articles in Financial Markets, Institutions & Instruments from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().