...Péter HARBULA CORPORATE GOVERNANCE, SHAREHOLDER STRUCTURES AND VALUE CREATION Summary : This paper analyzes the interaction between shareholder structures and the quality of the corporate governance structure in France using the value creation criterion. Using shareholder structures allows analyzing the performance of French firms and to measure an underperformance of “hard core” and diffuse ownership firms. This paper, updating results from Harbula (2004), also investigates the relationship between performance and shareholder stakes. Keywords: Corporate governance, value creation (EVA, CFROI), enterprise performance, shareholder structures. Classification JEL: G32, G34 Electronic copy available at: http://ssrn.com/abstract=1925045 Péter HARBULA: Corporate governance, shareholder structures and value creation 1. INTRODUCTION The objective of this working paper is to determine whether “hard core” governed firms truly underperform their peers. The main cornerstone of the analysis will be again to introduce the concept of shareholder structures. During the analysis, the common tools developed by corporate finance practitioners were used including, among others, value creation and return to shareholders. By performing this analysis, even if it is not the central point, the underlying question of ownership structure and efficiency will also be considered. I will also include in the analysis, beside the performance measurement tools, an analysis if the evolution...
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...1.1 Origin of the Report Bachelor of Business Administration (BBA) Course requires a three months attachment with an organization followed by a report assigned by the supervisor in the organization and endorsed by the faculty advisor. I took the opportunity to do my internship in BRAC Bank Limited at its Head office at Gulshan-1, Dhaka. Here I have conducted my study on “Credit Approval & Monitoring process of BRAC Bank Limited” with respect to Bangladesh Bank guidelines. My faculty supervisor Mr Khandaker Zahidul Alam, Assistant Professor of BRAC Business School, BRAC University, also approved the topic and authorized me to prepare this report as part of the fulfillment of internship requirement and gave me proper guidance and assistance over time. 1.2 Background of the Report Four years back, Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produced a document that would be a basic risk management model for each of the five 'core' risk areas of banking. The five core risk areas are as...
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...INTRODUCTION 1.1 Origin of the Report Bachelor of Business Administration (BBA) Course at Shanto Mariam University of Creative Technology (SMUCT) requires a three months attachment with an organization followed by a report assigned by the supervisor in the organization and endorsed by the faculty advisor. As I am already working for Dhaka Bank Limited (DBL), I took the opportunity to do my internship in my own organization. … also approved the topic and authorized me to prepare this report as part of the fulfillment of internship requirement. 1.2 Background of the Report Last year Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four 'Focus Groups' were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produce a document that would be a basic risk management model for each of the five 'core' risk areas of banking. The five core risk areas are as follows- a) Credit Risks; b) Asset and Liability/Balance Sheet Risks; c) Foreign Exchange Risks; d) Internal Control and Compliance Risks; and e) Money Laundering Risks. Bangladesh Bank in one of it’s circular (BRPD...
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...MANAGING CORE RISKS IN BANKING: CREDIT RISK MANAGEMENT Industry Best Practices BANGLADESH BANK CREDIT RISK MANAGEMENT Industry Best Practices PREPARED FOR: BANGLADESH BANK PREPARED BY: FOCUS GROUP ON CREDIT & RISK MANAGEMENT Team Co-ordinator: Team Members: Sudhir Chandra Das Ali Reza Iftekhar Niaz Habib A.G. Sarwar Brian J. McGuire Naser Ezaz Bijoy Page 2 INTRODUCTION: Risk is inherent in all aspects of a commercial operation, however for Banks and financial institutions, credit risk is an essential factor that needs to be managed. Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. Credit risk, therefore, arises from the bank’s dealings with or lending to corporates, individuals, and other banks or financial institutions. Credit risk management needs to be a robust process that enables banks to proactively manage loan portfolios in order to minimize losses and earn an acceptable level of return for shareholders. Central to this is a comprehensive IT system, which should have the ability to capture all key customer data, risk management and transaction information including trade & Forex. Given the fast changing, dynamic global economy and the increasing pressure of globalization, liberalization, consolidation and dis- intermediation, it is essential that banks have robust credit risk management policies and procedures that are sensitive and responsive to these changes...
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...Credit Risk Management Of AB Bank Limited 25. May, 2013 view with charts and images Executive Summary The ongoing development of contemporary management methods and the increased use of innovative financial products such as securitization and credit derivatives have brought about substantial changes in the business environment faced by credit institutions today. Especially in the field of lending, these changes and innovations are now forcing banks to adapt their in-house software systems and the relevant business processes to meet these new requirements. Credit Risk Management is intended to assist practitioners in redesigning a bank’s systems and processes in the course of implementing the Basel II framework. Throughout last five years securitization, rating and validation, credit approval processes and management, as well as credit risk mitigation techniques. Credit management is based on developments in the banking sectors is meant to provide readers with best practices AB bank would be well advised to implement regardless of the emergence of new regulatory capital requirements. AB Bank is to develop mutual understanding between regulatory authorities and banks with regard to the upcoming changes in banking. Credit risk Management provides interesting reading as well as a basis for efficient discussions of the current changes in AB Bank. The bank has been successful in holding its position as a progressive and dynamic financial institution in the country for a long...
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...Chapter-1 Introduction 1. BAckground of the study. Four years back Bangladesh Bank undertook a project to review the global best practices in the banking sector and examines in the possibility of introducing these in the banking industry of Bangladesh. Four ‘Focus Groups’ were formed with participation from Nationalized Commercial Banks, Private Commercial Banks & Foreign Banks with representatives from the Bangladesh Bank as team coordinators to look into the practices of the best performing banks both at home and abroad. These focus groups identified and selected five core risk areas and produced a document that would be a basic risk management model for each of the five 'core' risk areas of banking. The five core risk areas are as follows- a) Credit Risks; b) Asset & Liability / Balance Sheet Risks; c) Foreign Exchange Risks; d) Internal Control & Compliance Risks; and e) Money Laundering Risks. Bangladesh Bank in one of it’s circular (BRPD Circular no.17) advised the commercial banks of Bangladesh to put in place an effective credit approval and monitoring system by December, 2003 based on the guidelines sent to them. In my study, I would try to put forward my findings about the “Credit Management Policy of Bangladesh Bank, and its implementation”. To illustrate my point, I am giving the example of Bank Asia Limited. 2. Objectives of the study. Broad objective: ❖ The broad objective is to know...
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...Chapter: 1 SME Financing in Bangladesh We have come across many definitions of SMEs in Bangladesh. According to the Industrial Policy document from the Ministry of Industries, a small enterprise is defined as a registered enterprise with less than 50 workers, excluding the cottage units, and with a fixed capital investment of less than BDT 100 million. A medium enterprise is defined as a registered enterprise with between 50 and 99 workers, and/or with a fixed capital investment between BDT 100 million and BDT 300 million. The PCBs (Private Commercial Banks) seem to have various definitions based on loan components. The small-scale segment is in general defined as enterprises with a loan component between BDT 300,000 and BDT 10 million (between USD 5,500 and USD 185,000). Medium companies are said to have a loan component between BDT 10 million and BDT 100 million (between USD 185,000 and USD 1.85 million). Under yet another definition the World Bank estimates that Bangladesh has approximately 27,000 medium-scaled enterprises (here defined by the Government of Bangladesh as registered enterprises with assets larger than USD 600,000 equivalent) and 150,000 small-scale enterprises (registered enterprises with assets of less than USD 600,000 equivalent). The small and medium scale enterprises (SMEs) are mainly found within the industry and services sector. In Bangladesh, the SMEs account for about 45 percent of manufacturing value addition, 80 percent of industrial employment...
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...Project Management Institute A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK® Guide)—Fourth Edition 30, 0HPEHU &RS\ ² 1RW IRU 5HSURGXFWLRQ RU 'LVWULEXWLRQ An American National Standard ANSI/PMI 99-001-2008 ISBN: 978-1-933890-51-7 Published by: Project Management Institute, Inc. 14 Campus Boulevard Newtown Square, Pennsylvania 19073-3299 USA. Phone: +610-356-4600 Fax: +610-356-4647 E-mail: customercare@pmi.org Internet: www.pmi.org ©2008 Project Management Institute, Inc. All rights reserved. “PMI”, the PMI logo, “PMP”, the PMP logo, “PMBOK”, “PgMP”, “Project Management Journal”, “PM Network”, and the PMI Today logo are registered marks of Project Management Institute, Inc. The Quarter Globe Design is a trademark of the Project Management Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department. PMI Publications welcomes corrections and comments on its books. Please feel free to send comments on typographical, formatting, or other errors. Simply make a copy of the relevant page of the book, mark the error, and send it to: Book Editor, PMI Publications, 14 Campus Boulevard, Newtown Square, PA 19073-3299 USA. To inquire about discounts for resale or educational purposes, please contact the PMI Book Service Center. PMI Book Service Center P.O. Box 932683, Atlanta, GA 31193-2683 USA Phone: 1-866-276-4764 (within the U.S. or Canada) or +1-770-280-4129 (globally) Fax: +1-770-280-4113 E-mail: book.orders@pmi.org Printed in the...
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...Credit Risk Management CHAPTER: ONE ORIENTATION TO THE REPORT CHAPTER-1 Orientation to the Report 1.1 THE AUTHORIZATION FACT Internship is a compulsory requirement for everybody pursuing a BBA degree at University of Dhaka. The Internship program includes organizational attachment period of 12 weeks and report writing period of 4 weeks. I am working with the Operations Divisions of IDLC Finance Limited. After consultation with my faculty advisor Mr. Md. Nazim Uddin Bhuiyan and my supervisor in the host organization Mr. Md. Abdul Hannan, I decided to work on the policies and practices of credit risk management and appraisal process of IDLC. I strongly believe that, this study will enrich my knowledge in the very crucial area of the financial institutions (FIs): Credit Risk Management. 1.2 OBJECTIVES OF THE REPORT • MAIN OBJECTIVE: The main focus of the report is on credit risk management practices and credit appraisal procedure of IDLC Finance Limited. • SPECIFIC OBJECTIVES: The specific objectives are: ❖ To look at the portfolio of sectors financed by IDLC ❖ To evaluate the norms and rules practiced in assessing the borrower ❖ To compare the credit policy of IDLC with the credit policy guideline for the financial institutions (non-bank) of Bangladesh Bank and to identify the extent to which IDLC follows this guideline. ❖ To compare the credit risk management practices of IDLC Finance Limited with that of Industrial Promotion and Development Company...
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...Cisco IT Case Study – August 2013 Big Data Analytics How Cisco IT Built Big Data Platform to Transform Data Management EXECUTIVE SUMMARY CHALLENGE ● Unlock the business value of large data sets, including structured and unstructured information ● Provide service-level agreements (SLAs) for internal customers using big data analytics services ● Support multiple internal users on same platform SOLUTION ● Implemented enterprise Hadoop platform on Cisco UCS CPA for Big Data - a complete infrastructure solution including compute, storage, connectivity and unified management ● Automated job scheduling and process orchestration using Cisco Tidal Enterprise Scheduler as alternative to Oozie RESULTS ● Analyzed service sales opportunities in one-tenth the time, at one-tenth the cost ● $40 million in incremental service bookings in the current fiscal year as a result of this initiative ● Implemented a multi-tenant enterprise platform while delivering immediate business value LESSONS LEARNED ● Cisco UCS can reduce complexity, improves agility, and radically improves cost of ownership for Hadoop based applications ● Library of Hive and Pig user-defined functions (UDF) increases developer productivity. ● Cisco TES simplifies job scheduling and process orchestration ● Build internal Hadoop skills ● Educate internal users about opportunities to use big data analytics to improve data processing and decision making NEXT STEPS ● Enable NoSQL Database and advanced...
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...CHAPTER: ONE ORIENTATION TO THE REPORT CHAPTER-1 Orientation to the Report 1.1 THE AUTHORIZATION FACT Internship is a compulsory requirement for everybody pursuing a BBA degree at University of Dhaka. The Internship program includes organizational attachment period of 12 weeks and report writing period of 4 weeks. I am working with the Operations Divisions of IDLC Finance Limited. After consultation with my faculty advisor Mr. Md. Nazim Uddin Bhuiyan and my supervisor in the host organization Mr. Md. Abdul Hannan, I decided to work on the policies and practices of credit risk management and appraisal process of IDLC. I strongly believe that, this study will enrich my knowledge in the very crucial area of the financial institutions (FIs): Credit Risk Management. 1.2 OBJECTIVES OF THE REPORT • MAIN OBJECTIVE: The main focus of the report is on credit risk management practices and credit appraisal procedure of IDLC Finance Limited. • SPECIFIC OBJECTIVES: The specific objectives are: ❖ To look at the portfolio of sectors financed by IDLC ❖ To evaluate the norms and rules practiced in assessing the borrower ❖ To compare the credit policy of IDLC with the credit policy guideline for the financial institutions (non-bank) of Bangladesh Bank and to identify the extent to which IDLC follows this guideline. ❖ To compare the credit risk management practices of IDLC Finance Limited with that of Industrial Promotion and Development Company of Bangladesh...
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...INTERNSHIP REPORT ON CREDIT RISK MANAGEMENT OF DHAKA BANK LIMTED [pic] EXCELLENCE IN BANKING DEPARTMENT OF FINANCE & BANKING UNIVERSITY OF CHITTAGONG CHITTAGONG. CREDIT RISK MANAGEMENT OF Preface The banking sector of Bangladesh is dominated by commercial banks with huge debt burdens. Inefficiency in loan sanctioning, expansion of preferential loans, and poor classification and administration of loans has led to the slow recovery of credit extended by the banks. To restore efficiency and accountability in this sector, an effective credit risk management system is necessary. To manage credit risk efficiently Bangladesh Bank has provided a guideline for CRM. Besides, Basel Committee on Banking Supervision has set a guideline on Sound credit risk assessment and valuation for loan in order to encourage banking supervisors globally to promote sound practices for managing credit risk. This paper presents a comparative picture of credit risk management of Dhaka Bank Limited with Bangladesh Bank’s guidelines and Basel Committee for Banking Supervision’s (BCBS) guideline regarding Credit Risk Management. This report also provides an overview of the Credit Risk Management of DBL. In this report DBL’s credit risk management system is analyzed into three sections. First of all the policy guidelines have been analyzed and compared with Bangladesh bank’s guideline. After that the organizational structure & responsibilities have been analyzed...
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...1. Introduction: The recruitment and selection processes of an organization are two of its most important HR planning activities. The basic purpose of recruiting is to ensure a sufficient pool of applicants from which the most qualified individuals may be selected. Effective recruiting is important because sufficient number of qualified applicants is needed to ensure that selection can be successfully accomplished. 1.1 Origin of the Report: This report is a requirement of the internship program which is an important part of the MBA degree requirement. As the supervisor has advised me to develop a thorough understanding of the recruitment and selection processes of Prime Bank Limited (PBL), this report will be prepared on those aspects of the HR practices of PBL. 1.2 Objectives of the Study: The objectives of this study will be: * To evaluate the current recruitment and selection policy and process of Prime Bank Limited. * To find out the weaknesses of the current policy. * To suggest improvements to the policy. 1.3 Methodology: In the preparation of this report, data has been collected from both primary and secondary sources. In-depth interviews of some of the employees of the HR Division of Prime Bank Limited have been conducted to gather necessary information. Also, the Recruitment and Selection Policy of PBL has been consulted in preparing this report. Moreover, text books, the internet, the annual report of Prime Bank Limited etc. have been used to collect...
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...MATH 275: Calculus III Lecture Notes by Angel V. Kumchev Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lecture 1. Lecture 2. Lecture 3. Lecture 4. Lecture 5. Lecture 6. Lecture 7. Lecture 8. Lecture 9. Lecture 10. Lecture 11. Lecture 12. Lecture 13. Lecture 14. Lecture 15. Lecture 16. Lecture 17. Lecture 18. Lecture 19. Lecture 20. Lecture 21. Lecture 22. Lecture 23. Three-Dimensional Coordinate Systems . . . . . . . . . . . . . . . . . . . . . iii 1 Vectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Lines and Planes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Vector Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Space Curves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Multivariable Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Surfaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Partial Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Directional Derivatives and Gradients . . . . . . . . . . . . . . . . . . . . . . . 77 Tangent Planes and Normal Vectors . . . . . . . . . . . . . . . . . . . . . . . 81 Extremal Values of Multivariable Functions . . . . . . . . . . . . . . . . . . . 91 Lagrange Multipliers* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Double Integrals...
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...former Soviet Union was no small feat (see Exhibits 1 and 2). To be successful in these turbulent times was nothing short of amazing to industry observers. In 2002, Ice-Fili, a midsized Russian company with more than $25 million in sales, was Russia’s top ice cream producer. Surprisingly, it had outlasted several well-known international companies such as Ben & Jerry’s, which exited the Russian market in 1997, and Unilever, which left in 2001. Ice-Fili had not only successfully transitioned from the tight controls of the Soviet regime to the infant Russian open-market economy in 1992, but it had also successfully navigated its way through the difficult times of Russia’s 1998 financial crisis. Ice-Fili was fighting to maintain its market share leadership in the increasingly competitive Russian ice cream market, which had decreased over the past few years to about a half-billion dollars in sales. Nestlé, which advertised heavily, was Ice-Fili’s fiercest competitor. While most ice cream producers were left to fight in an already saturated ice cream kiosk system, Baskin & Robbins and Haagen-Dazs1 had positioned themselves as premium ice cream producers, distributing through franchised restaurant and café networks. At the other end of the competitive spectrum, the small regional ice cream producers, which were believed to have lower production costs than Ice-Fili and other Moscow-based producers, were now making strong inroads in the major metropolitan markets. Anatoliy Shamanov, Ice-Fili’s...
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