Measuring Shareholder Value Drivers in Banking

Franco Fiordelisi and Philip Molyneux ()

Chapter 6 in Shareholder Value in Banking, 2006, pp 194-255 from Palgrave Macmillan

Abstract: Abstract All stakeholders are dependent on each other for their success in the long term and managing to create sustained shareholder value is not a zero-sum game. Creating stable shareholder value 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 local areas where the company has a presence. As such, several strategies have been developed since the 1990s to improve customer satisfaction that have included the redesign of productive and delivery services, the development of more flexible organisational structures, the introduction of incentive schemes that motivate banks’ human resources to act according to shareholders’ goals, etc. In Chapter 4, we identified four primary drivers that create shareholder value in banking. These relate to improved bank efficiency (cost efficiency, profit efficiency and productivity), enhanced customer satisfaction, optimising banks’ financial structure and developing an optimal mix of business activities.

Keywords: Data Envelopment Analysis; Customer Satisfaction; Total Factor Productivity; Commercial Bank; Data Envelopment Analysis Model (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (3)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:pmschp:978-0-230-59592-7_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230595927

DOI: 10.1057/9780230595927_6

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().