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

Julia Lynch

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

Julia Lynch

Business

Research output: Book chapter/Published conference paper › Conference paper › peer-review

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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 language	English
Title of host publication	7th International business research conference
Subtitle of host publication	Research matters
Editors	Mohammad Hoque
Place of Publication	Sydney, Australia
Publisher	World Business Institute
Pages	1-12
Number of pages	12
ISBN (Electronic)	9780980455700
Publication status	Published - 2007
Event	International Business Research Conference - Sydney, Australia, Australia Duration: 03 Dec 2007 → 06 Dec 2007

Conference

Conference	International Business Research Conference
Country/Territory	Australia
Period	03/12/07 → 06/12/07

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CSU287799Accepted author manuscript, 413 KB

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title = "Measuring Competitiveness: A Case Study of the Australian Banking Industry.",

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",

keywords = "Open access version available, Banking, Industry economics, Measurement of competition",

author = "Julia Lynch",

note = "Imported on 03 May 2017 - DigiTool details were: publisher = Sydney, Australia: World Business Institute, 2007. editor/s (773b) = Dr Hoque, Mohammad; Event dates (773o) = 3-7 December 2007; Parent title (773t) = International Business Research Conference.; International Business Research Conference ; Conference date: 03-12-2007 Through 06-12-2007",

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booktitle = "7th International business research conference",

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T2 - International Business Research Conference

AU - Lynch, Julia

N1 - Imported on 03 May 2017 - DigiTool details were: publisher = Sydney, Australia: World Business Institute, 2007. editor/s (773b) = Dr Hoque, Mohammad; Event dates (773o) = 3-7 December 2007; Parent title (773t) = International Business Research Conference.

PY - 2007

Y1 - 2007

N2 - 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

AB - 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

KW - Open access version available

KW - Banking

KW - Industry economics

KW - Measurement of competition

M3 - Conference paper

SP - 1

EP - 12

BT - 7th International business research conference

A2 - Hoque, Mohammad

PB - World Business Institute

CY - Sydney, Australia

Y2 - 3 December 2007 through 6 December 2007

ER -

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

Abstract

Conference

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