Measuring Competitiveness: A Case Study of the Australian Banking Industry.

Julia Lynch

Research output: Book chapter/Published conference paperConference paper

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Abstract

In this paper the returns of Australia's top four banks are analysed using the capital asset pricing model (CAPM) for the period 1999-2001. The CAPM is used to predict the required rate of return of particular firms after accounting for the risk of the investment. The results show that all four banks achieved returns above that predicted by the CAPM and so could be said to be earning excessive returns, indicating a lack of competitiveness. This finding is not unexpected given that over the period of this analysis banks were known to have behaved in a non-competitive manner in relation to credit cards schemes. Analysis over a longer time period is need to establish if these above normal profits are still present in the industry
Original languageEnglish
Title of host publication7th International business research conference
Subtitle of host publicationResearch matters
EditorsMohammad Hoque
Place of PublicationSydney, Australia
PublisherWorld Business Institute
Pages1-12
Number of pages12
ISBN (Electronic)9780980455700
Publication statusPublished - 2007
EventInternational Business Research Conference - Sydney, Australia, Australia
Duration: 03 Dec 200706 Dec 2007

Conference

ConferenceInternational Business Research Conference
CountryAustralia
Period03/12/0706/12/07

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    Lynch, J. (2007). Measuring Competitiveness: A Case Study of the Australian Banking Industry. In M. Hoque (Ed.), 7th International business research conference: Research matters (pp. 1-12). World Business Institute.