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Investment Appraisal Process in the Banking & Finance Industry

Author

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  • Akalu, M.M.
  • Turner, J.R.

Abstract

We have studied how the banking and finance industry performs investment appraisal, measures subsequent follow-up and designates project success or failure. Furthermore, the authors looked into the extent of use of the new generation value management models. The result shows that firms are not using the same measurement scale in all stages of a project. Moreover, there is a tendency to shift from traditional appraisal methods to the new generation value management models.

Suggested Citation

  • Akalu, M.M. & Turner, J.R., 2002. "Investment Appraisal Process in the Banking & Finance Industry," ERIM Report Series Research in Management ERS-2002-17-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:167
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    DCF methods; investment appraisal; project; shareholder value analysis; value management techniques;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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