Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Banking sector a highly regulated sector
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Banking sector a highly regulated sector
Analysis and Interpretation
In this chapter, the data collected were systemically processed, tabulated and made suitable for analysis and interpretations. It was a study on stock price movement in selected banking companies through data collected for the nine months from July to March. The performance is analyzed for the stock prices of Current market price, Yearly high, Yearly low, Last completed financial year value, Sales, Operating profit margin, Net profit, Equity, Earning per share, Book value, Factor value, Dividend and Price Earnings. The results obtained were classified, tabulated and the following analyses were performed in fulfilling the objectives of the study.
The data analysis consists of six major sections.
Section – 1
Bank wise distribution of descriptive Statistics regarding the Weekly Average of the stock price movement
Section – 2
Bank wise distribution of descriptive Statistics regarding the Monthly Average of the stock price movement
Section – 3
Fitting Trend line for Next Three month
Section – 4
Compare average stock price movement on public banks, private banks
Section – 1
Bank wise distribution of descriptive Statistics regarding the Weekly Average for each of the stock price movement
In this section the Weekly Average of Current market price, Yearly high, Yearly low, Last completed financial year value, Sales, Operating profit margin, Net profit, Equity, Earning per share, Book value, Factor value, Dividend and Price Earnings for the public sector bank of SBI, and for the private sector banks of HDFC.
1 Weekly movement of Current market price
The performances of Current market price of the public sector and private sector banks are analyzed in this section. The Weekly movement of Current market p...
... middle of paper ...
...ast completed financial year value, Sales, Operating profit margin, Net profit, Equity, Earning per share, Book value, Factor value, Dividend and Price Earnings for the public sector banks of SBI and for the private sector banks of HDFC bank.
2.1 Monthly movement of Current market price
The performances of Current market price of the public sector and private sector banks are analyzed in this section. The Monthly movement of Current market price of the public sector and private sector banks is analyzed and the result is given in Table 2.1.
Table 2.1
Monthly movement of Current market price –Public sector Banks Private sector Banks
Month Current market price
SBI
Mean SD
July 2,394.9 101.4
August 2,710.8 144.7
September 3,030.6 172.6
October 3,219.1 53.2
November 3,092.7 274.1
December 2,785.3 205.2
January 2,657.5 103.4
February 2,692.9 83.8
March 2,642.7 75.8
Corporations keep various types of financial records and it is the responsibility of managers to make sure that the records are maintained and resolved at the end of the fiscal year. Most company has shareholders that want a year-end account on how the company has done and with a projection of what the company is capable of doing in the future. The shareholders have a vested interest and want to be kept informed on how the company is doing financially. Financial records for major corporations are public knowledge and this paper is comparing Target and Wal-Mart and their financial standings.
In order to analyze Ally, I will be evaluating its balance sheet and performance ratios over the period from June 2006 to June 2013. This will show the progression of the bank throughout the 2008-2009 financial crisis. I will compare Ally’s financial data to the whole US banking industry as a way to analyze the banks risk and performance over that period. Factors such as profitability, credit risk, capital adequacy, liquidity risk, interest rate risk, market risk, ad off balance sheet exposures will all be evaluated.
The first statistic that will be discussed is stock price. According to the Capsim Student Guide, stock price is determined by book value, the last two years’ earnings per share (EPS),
To collect relevant data, the annual percentage change in net income per common share diluted, net income/net revenues, the major income statement accounts to net revenues, return on stockholders’ equity, the price/earnings (P/E) ratio, and the book values per share for each year numbers were examined. In order for Sun Microsystems to see a greater return in its bottom line assets, it must consider an alternative approach in operating its organization.
Ross, S.A., Westerfield, R.W., Jaffe, J. and Jordan, B.D., 2008. Modern Financial Management: International Student Edition. 8th Edition. New York: McGraw-Hill Companies.
These market anomalies include the pricing/earnings effect, the size and January effect, the monthly effect, the holiday effect and the weekend effect.... ... middle of paper ... ... The aforesaid aforesaid aforesaid aforesaid aforesaid aforesaid afor Fama, Eugene F. “Efficient Capital Markets: A Review of Empirical Work.” Journal of Finance 25, no. 1 (September, 2011).
The concept of beta has gained prominence due to the pioneering works of Sharpe (1963), Lintner (1965) and Mossin (1966). There are many studies that examine the behaviour and nature of beta. These studies include the impact of the length of the estimation interval, the stability of individual security beta as compared to portfolio beta, factors influencing the beta as well as the stability of beta in various market conditions.
Modern finance theory has proved that there is a relationship between accounting earnings and share prices, the study has proven that the higher the expected future earnings, the higher the
Stock market prediction is the method of predicting the price of a company’s stock. It is believed that stock price is lead by random walk hypothesis. Random walk hypothesis states that stock market price matures randomly and hence can’t be predicted. Pesaran (2003) states that it is often argued that if stock markets are efficient then it should not be possible to predict stock returns. In fact, it is easily seen that stock market returns will be non-predictable only if market efficiency is combined with risk neutrality. On the other hand it is also been concluded that using variance ratio tests long horizon stock market returns can be predicted....
Hypothesis (EMH). Efficiency is demonstrated by showing that the market response to an event takes place either before the event or very shortly after the event - information is either anticipated or very quickly assimilated. The pioneering work on event study was done by Ball and Brown (1968) and Fama, Fisher, Jensen and Roll (1969) (henceforth referred to as FFJR). The methodologies used in these studies have become a standard technique for testingThe EMH. Over the last two decades a variety of events such as announcement of stock splits, announcement of earnings, mergers and takeovers have been studied by researchers for examining market efficiency.
These accounting information are so much important for the business owner or financial statements reader to analyze the company and make the economics decision.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified
I summarize here some of the more common distributions utilized in probability and statistics. Some are more consequential than others, and not all of them are utilized in all fields.For each distribution, I give the denomination of the distribution along with one or two parameters and betoken whether it is a discrete distribution or a perpetual one. Then I describe an example interpretation for a desultory variable X having that distribution. Each discrete distribution is tenacious by a probability mass function f which gives the probabilities for the sundry outcomes, so that f(x) = P (X=x), the probability that an arbitrary variable X with that distribution takes on the value x. Each perpetual distribution is tenacious by a probability density function f, which, when integrated from a to b gives you the probability P (a ≤ X ≤ b). Next, I list the mean µ = E(X) and variance σ2 = E((X −µ)2) = E(X2)−µ2 for the distribution, and for most of the distributions I include the moment engendering function m(t) = E(Xt). Finally, I denote how some of the distributions may be utilized.
Ravi, Sreenivasan. "Statistical And Probabilistic Methods In Actuarial Science." Journal Of The Royal Statistical Society: Series A (Statistics In Society) 172.2 (2009): 530. Business Source Premier. Web. 25 Oct. 2013.
A variety of groups are concerned in bank profitability for various reasons. The bank shareholders would want to know if the value of their investments is high or low. The investors also use current and past performance to predict future price of the banks’ shares traded on the stock exchanged. The management of the bank as trustee of the shareholders is evaluated and compensated on the basis of how well their decisions and planning have contributed to growth in assets and profits of their banks. Employees of bank also are concerned with profits, since their salaries and promotions are frequently tied to the profitability performance of their banks.