Estimating the Overall Financial Performance of Mexican Banks Using a New Method for Quantifying Subjective Information

Posted: 16 Apr 1998

See all articles by Nikolai V. Hovanov

Nikolai V. Hovanov

Saint Petersburg State University

James W. Kolari

Texas A&M University - Department of Finance

Abstract

In this article we estimate the overall financial performance of Mexican banks using a new method (hereafter ASPID) for quantifying subjective information. Financial analysts typically collect considerable numerical information on multiple criteria that pertain to the financial performance of firms and must eventually aggregate (or synthesize) this information into an overall assessment. Unfortunately, analysts can only make subjective evaluations concerning the relative importance of different criteria under consideration, such that the final results of comprehensive evaluations tend to be subjective also. The proposed method attempts to overcome this problem by generating stochastic estimates of overall performance based on multiple criteria for which numerical information is available in addition to subjective judgments concerning the relative importance of these criteria.

JEL Classification: G21

Suggested Citation

Hovanov, Nikolai V. and Kolari, James W., Estimating the Overall Financial Performance of Mexican Banks Using a New Method for Quantifying Subjective Information. Journal of Financial Engineering, Vol. 7, No. 1, March 1998. Available at SSRN: https://ssrn.com/abstract=75952

Nikolai V. Hovanov (Contact Author)

Saint Petersburg State University ( email )

198904, Bibliotechnaya sq.2
Faculty of Economics
St. Petersburg
Russia
+7(812)164-2937 (Phone)
+7(812)164-4136 (Fax)

James W. Kolari

Texas A&M University - Department of Finance ( email )

MS-4218
Department of Finance
College Station, TX TX 77843-4218
United States
979-845-4803 (Phone)
979-845-3884 (Fax)

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