Investment Appraisal Process in the Banking & Finance Industry

15 Pages Posted: 20 Feb 2003

See all articles by Mehari Mekonnen Akalu

Mehari Mekonnen Akalu

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM)

John Rodney Turner

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM)

Date Written: 19 2002 2,

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.

Keywords: investment appraisal, DCF methods, value management techniques, project, shareholder value analysis

JEL Classification: M, M10, L2, G24

Suggested Citation

Mekonnen Akalu, Mehari and Turner, John Rodney, Investment Appraisal Process in the Banking & Finance Industry (19 2002 2,). ERIM Report Series Reference No. ERS-2002-17-ORG. Available at SSRN: https://ssrn.com/abstract=370961

Mehari Mekonnen Akalu (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Burgemeester Oudlaan 50
3062 PA Rotterdam, NL 3062 PA
Netherlands
+31 10 408 8943 (Phone)
+31 10 408 9031 (Fax)

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

John Rodney Turner

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Burgemeester Oudlaan 50
3062 PA Rotterdam, NL 3062 PA
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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