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Data Driven Decision Analysis in Bank Financial Management with Goal Programming Model

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Advances in Visual Informatics (IVIC 2017)

Part of the book series: Lecture Notes in Computer Science ((LNIP,volume 10645))

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Abstract

Financial management is important to the companies such as banks and financial institutions in managing the assets and liabilities. In optimizing the financial management, different goals have to be achieved simultaneously such as asset accumulation, liability reduction, equity, earning, profitability and total goal achievement. Therefore, goal programming model is introduced to solve the multiple objectives decision making problem in financial management. The objective of this study is to develop a goal programming model to optimize and compare the financial management of the banks in Malaysia based on the benchmark target value for each goal. In this study, six goals such as total assets, total liability, equity, profitability, earnings and total goal achievements are investigated for the period from year 2012 until 2016. The results of this study show that all banks are able to achieve the goal for total asset and equity. Moreover, the target value of equity can be increased further for all banks in future. This study is significant because it helps to determine the potential improvement on total liability, profit, earnings and total goal achievement for each bank in order to achieve the benchmark target value for future development.

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Author information

Authors and Affiliations

  1. Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Jalan Universiti, Bandar Barat, 31900, Kampar, Perak, Malaysia

    Lam Weng Siew, Chen Jia Wai & Lam Weng Hoe

  2. Centre for Mathematical Sciences, Centre for Business and Management, Universiti Tunku Abdul Rahman, Kampar Campus, Jalan Universiti, Bandar Barat, 31900, Kampar, Perak, Malaysia

    Lam Weng Siew & Lam Weng Hoe

Authors
  1. Lam Weng Siew
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  2. Chen Jia Wai
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  3. Lam Weng Hoe
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Corresponding author

Correspondence to Lam Weng Siew .

Editor information

Editors and Affiliations

  1. Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia

    Halimah Badioze Zaman

  2. University of Cambridge, Cambridge, United Kingdom

    Peter Robinson

  3. Dublin City University, Dublin, Ireland

    Alan F. Smeaton

  4. National Central University, Jhongli, Taiwan

    Timothy K. Shih

  5. Carlos III University of Madrid, Madrid, Spain

    Sergio Velastin

  6. Toyo University, Kawagoe, Japan

    Tada Terutoshi

  7. Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia

    Azizah Jaafar

  8. Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia

    Nazlena Mohamad Ali

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Siew, L.W., Wai, C.J., Hoe, L.W. (2017). Data Driven Decision Analysis in Bank Financial Management with Goal Programming Model. In: Badioze Zaman, H., et al. Advances in Visual Informatics. IVIC 2017. Lecture Notes in Computer Science(), vol 10645. Springer, Cham. https://doi.org/10.1007/978-3-319-70010-6_63

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  • DOI: https://doi.org/10.1007/978-3-319-70010-6_63

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-70009-0

  • Online ISBN: 978-3-319-70010-6

  • eBook Packages: Computer ScienceComputer Science (R0)

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