By Stephanie Gross, Prof. Dr. Andreas Hackethal
Within the German banking region, administration is consistently expanding its specialise in shareholder pursuits. this is noticeable within the bold profitability objectives set by way of administration during this area. a few municipalities also are placing expanding strain on Landesbanks and saving banks, as participants of the biggest German banking crew, to create larger monetary price.
Read Online or Download Bank and Shareholder Value: An Overview of Bank Valuation and Empirical Evidence on Shareholder Value for Banks PDF
Best accounting books
"In order to make sure that the constitution surrounding the operational atmosphere is sound, auditors and controllers want advice on how you can take non-stop auditing from inspiration to truth. Drawing at the author's twenty years of auditing event, this publication is a 'how to' for development, advertising, and handling a continual auditing approach for firms.
For MBA scholars and graduates embarking on careers in funding banking, company finance, process consulting, cash administration, or enterprise capital via integration with conventional MBA issues, Taxes and enterprise technique, 5th version presents a framework for knowing how taxes impact decision-making, asset costs, equilibrium returns, and the monetary and operational constitution of agencies.
Directed essentially towards Accounting college/university majors, this article additionally offers useful content material to present and aspiring execs. Auditing and coverage companies: An built-in technique provides an built-in recommendations process that exhibits readers the auditing approach from begin to end.
- Full of Bull: Unscramble Wall Street Doubletalk to Protect and Build Your Portfolio
- A Guide to Accounting Zakah
- Wiley CIAexcel Exam Review 2015 Focus Notes, Part 2: Internal Audit Practice
- Accounting Information Book
- Accounting for Non-Accountants: The Fast and Easy Way to Learn the Basics (3rd Edition)
Extra resources for Bank and Shareholder Value: An Overview of Bank Valuation and Empirical Evidence on Shareholder Value for Banks
41. '^ See Hohmann (1998), p. 12; Merkle (2001), p. 40; Kunowski (2002), p. 21. Krag (1988) gives an overview of these rights for German banks. With regard to international accounting standards, IAS regulation no. 39 and 40 regulate accounting for financial instruments and hedges. Yet banks' freedom to build up hidden reserves is more limited in IAS compared to HGB. See Krumnow (2001), pp. 191-193. For an overview of HGB, IAS, and US-GAAP as well as existing differences in accounting standards for banks, see Buba (2002b).
2 Bank-specific laws and regulations Due to the risks taken on by banks, their specific role in the economic system, and their dependency on economic cycles, banks are subject to various bank-specific rules and regulations,"^"* and the effects of regulatory requirements on value have to be considered. In this context, the bank-specific accounting standards and the capital adequacy requirements of banks are of particular relevance. Due to banks' specific dependency on macroeconomic factors, legislators give them specific rights to build up reserves.
See Vettiger (1996), p. 158; Koch (2002), p. 40. 30 How to measure the shareholder value of banks? ^^ The use of predicted P/E ratios and an estimate of future earnings can solve this problem. ^^ Consequently, the P/E approach tends to overvalue growing banks with a high share of interest income. Furthermore, the explanatory power of P/E ratios depends on the quality of the underlying accounting variables. 3. ^° See Damodaran (2004), p. 32. ^' Another widely used multiple is the price-to-sales (P/S) multiple.