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Title
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Ranking of the Lithuanian Banks during the recession of 2008-2009 by the MULTIMOORA Method
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Author
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Abstract
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| The aim of this study is to do a critical analysis, on the basis of different objectives, the banks registered in Lithuania during the recession years 2008-2009. As these banks work in the same macro-economic environment, the objectives are chosen on the basis of the CAMEL classification (C Capital adequacy, A Asset quality, M Management quality, E Earnings, L Liquidity). Traditional Cost-Benefit Analysis is not suitable enough for this. Indeed Cost-Benefit analysis translates all direct and indirect costs and other objectives (benefits) into money terms. On the contrary, Multi-Objective Optimization takes care of the different objectives, with objectives keeping their own units. Different methods exist for the application of Multi-Objective Optimization. In our research, we tested these methods for their robustness. MOORA (Multi-Objective Optimization by Ratio analysis) and MULTIMOORA (MOORA plus a Full Multiplicative Form), showed positive results on these tests. Therefore MULTIMOORA was chosen for the ranking of the Lithuanian Banks during the recession years 2008-2009. Keywords: Multi-objective optimization, Lithuanian banks, bank objectives, robustness, ratio system, Reference point method, Full multiplicative form. |
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Language
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English
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Source (journal)
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Annals of management science. - Franklin, TN, 2012, currens
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Publication
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Franklin, TN
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International Center for Business and Management Excellence
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2014
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ISSN
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2161-5012
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Volume/pages
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3
:1
(2014)
, p. 1-28
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