A fundamental evaluation of the top five South African banks after the financial crisis
A significant correlation exists between financial crises and bank liquidity problems, thus exposing the investor to increased risk where the banking industry forms part of their investment portfolios. Also, due to more volatile markets and more complex financing banking activities, the general noti...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2013-10-01
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| Series: | Journal of Economic and Financial Sciences |
| Subjects: | |
| Online Access: | https://jefjournal.org.za/index.php/jef/article/view/256 |
| _version_ | 1818336961621917696 |
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| author | Chris van Heerden André Heymans |
| author_facet | Chris van Heerden André Heymans |
| author_sort | Chris van Heerden |
| collection | DOAJ |
| description | A significant correlation exists between financial crises and bank liquidity problems, thus exposing the investor to increased risk where the banking industry forms part of their investment portfolios. Also, due to more volatile markets and more complex financing banking activities, the general notion of evaluating only share price trends to determine future investment prospects can become misleading. This paper, therefore, focuses on a multi-stage Data Envelopment Analysis (DEA) model as a complementary share performance tool to the traditional set of fundamental factors. When combining the results from the DEA model and a set of traditional financial measures, Nedbank and FirstRand were found to be the more sensible investment choices for the period under investigation. |
| first_indexed | 2024-12-13T14:47:38Z |
| format | Article |
| id | doaj.art-125179d9397349c7acbba187aec43779 |
| institution | Directory Open Access Journal |
| issn | 1995-7076 2312-2803 |
| language | English |
| last_indexed | 2024-12-13T14:47:38Z |
| publishDate | 2013-10-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Economic and Financial Sciences |
| spelling | doaj.art-125179d9397349c7acbba187aec437792022-12-21T23:41:25ZengAOSISJournal of Economic and Financial Sciences1995-70762312-28032013-10-016310.4102/jef.v6i3.256194A fundamental evaluation of the top five South African banks after the financial crisisChris van Heerden0André Heymans1School of Economics, North West UniversitySchool of Economics, North West UniversityA significant correlation exists between financial crises and bank liquidity problems, thus exposing the investor to increased risk where the banking industry forms part of their investment portfolios. Also, due to more volatile markets and more complex financing banking activities, the general notion of evaluating only share price trends to determine future investment prospects can become misleading. This paper, therefore, focuses on a multi-stage Data Envelopment Analysis (DEA) model as a complementary share performance tool to the traditional set of fundamental factors. When combining the results from the DEA model and a set of traditional financial measures, Nedbank and FirstRand were found to be the more sensible investment choices for the period under investigation.https://jefjournal.org.za/index.php/jef/article/view/256DEAfundamental analysisscale efficiencytechnical efficiency |
| spellingShingle | Chris van Heerden André Heymans A fundamental evaluation of the top five South African banks after the financial crisis Journal of Economic and Financial Sciences DEA fundamental analysis scale efficiency technical efficiency |
| title | A fundamental evaluation of the top five South African banks after the financial crisis |
| title_full | A fundamental evaluation of the top five South African banks after the financial crisis |
| title_fullStr | A fundamental evaluation of the top five South African banks after the financial crisis |
| title_full_unstemmed | A fundamental evaluation of the top five South African banks after the financial crisis |
| title_short | A fundamental evaluation of the top five South African banks after the financial crisis |
| title_sort | fundamental evaluation of the top five south african banks after the financial crisis |
| topic | DEA fundamental analysis scale efficiency technical efficiency |
| url | https://jefjournal.org.za/index.php/jef/article/view/256 |
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