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COMPROMISE PROGRAMMING APPROACH TO PERFORMANCE OF BANK FUNDS

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COMPROMISE PROGRAMMING APPROACH TO PERFORMANCE OF BANK FUNDS

Abstract

The CaixaBank offers funds to customers. To evaluate their performance a linear-quadratic compromise programming model is developed. This measure can be extended to many investment criteria while the traditional ratio-based and leverage-based measures are essentially limited to profitability and risk. It also avoids negativity in the ratio values. Sophisticate compromise programming proves superior to the simple use of ratios. Customers’ profiles of The CaixaBank are defined by weighting systems. Each one leads to coherent results which are compared to the results from domination analysis.