Md. Nurul Alam | University of Chittagong, Bangladesh (original) (raw)
Papers by Md. Nurul Alam
Subprime mortgage crisis is defined as a nationwide banking emergency that coincided with the U.S... more Subprime mortgage crisis is defined as a nationwide banking emergency that coincided with the U.S.
recession of December 2007 – June 2009. This incident had been analyzed from various aspects as it
redefined the world economy and the largest banking and financial institutions of the world. A
major American financial services company Citigroup suffered the crisis caused by manifold
contributing reasons that could be triggered and prevented prior to the crisis, is analyzed here.
Secondary data had been used here to formulate the thorough study from sources like Reuters,
Sonntag, Barnett-Hart. Excessive issuance of CDOs by Citigroup to reallocate risk, regulate capital
relief and earn greater profit was the substantial reason of its distress. Besides insufficient risk
management resulting from risk managers’ cronyism and retransfer of huge amount of troubled
assets back into its balance sheet to avoid the forego of its institutional clients due to shadow
banking added to the situation. The crisis resulted in a numerical loss of $18.72 billion and around
100000 job cuts during 2008 period. Government aid like bail-out and internal restructure was
implemented by this giant institution to overcome the distress. An analysis, backed by the study of
the overall mishap suggests that, providing Citigroup with independent risk management, credit
rating of its internal departments with stricter regulations, audits and checking rather than profit
oriented private rating agencies and deeper focus on future strategies would act better as measures
to prevent recurrence of such crisis and to eradicate the impact of the happened crisis in Citigroup.
The report contains 5 sections. Section 1 to 5 contains Introduction and Background of subprime
mortgage crisis; Key factors that caused Citigroup’s Distress; Impact of the crisis on Citigroup;
Measures taken to improve the situation; Recommended Measures and conclusion respectively.
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The Chittagong University Journal of Business Administration., Jun 19, 2017
This study examines the effects of operating efficiency on the returns of portfolios for the Food... more This study examines the effects of operating efficiency on the returns of portfolios for the Food and Allied sector stocks of Dhaka Stock Exchange, Bangladesh. In doing so, the study firstly measures operating efficiency of the sample firms applying Data Envelopment Analysis (hereafter DEA) techniques. Secondly, sample firms are grouped into efficient and inefficient portfolios based on the efficiency scores. Thirdly, Mann Whitney–U test is applied to test the alternative hypothesis if returns of an efficient portfolio is significantly different from the same of an inefficient portfolio. Results exhibit that Mann Whitney–U test rejects the alternative hypothesis, indicating that there is no significant difference between returns of operationally efficient and inefficient portfolios food and allied companies listed on the Dhaka Stock Exchange. Results of this study also find that inefficient use of inputs and unfavorable financial environment are the reasons of observing no significant difference between returns of portfolios.
Keywords: DEA, Food and Allied Corporation (FAC), Input-output, Firms, Efficient and Inefficient Portfolios, Stocks, Return, Operating Efficiency,
JEL Categories: E31, E44, G39
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Bookmarks Related papers MentionsView impact
Subprime mortgage crisis is defined as a nationwide banking emergency that coincided with the U.S... more Subprime mortgage crisis is defined as a nationwide banking emergency that coincided with the U.S.
recession of December 2007 – June 2009. This incident had been analyzed from various aspects as it
redefined the world economy and the largest banking and financial institutions of the world. A
major American financial services company Citigroup suffered the crisis caused by manifold
contributing reasons that could be triggered and prevented prior to the crisis, is analyzed here.
Secondary data had been used here to formulate the thorough study from sources like Reuters,
Sonntag, Barnett-Hart. Excessive issuance of CDOs by Citigroup to reallocate risk, regulate capital
relief and earn greater profit was the substantial reason of its distress. Besides insufficient risk
management resulting from risk managers’ cronyism and retransfer of huge amount of troubled
assets back into its balance sheet to avoid the forego of its institutional clients due to shadow
banking added to the situation. The crisis resulted in a numerical loss of $18.72 billion and around
100000 job cuts during 2008 period. Government aid like bail-out and internal restructure was
implemented by this giant institution to overcome the distress. An analysis, backed by the study of
the overall mishap suggests that, providing Citigroup with independent risk management, credit
rating of its internal departments with stricter regulations, audits and checking rather than profit
oriented private rating agencies and deeper focus on future strategies would act better as measures
to prevent recurrence of such crisis and to eradicate the impact of the happened crisis in Citigroup.
The report contains 5 sections. Section 1 to 5 contains Introduction and Background of subprime
mortgage crisis; Key factors that caused Citigroup’s Distress; Impact of the crisis on Citigroup;
Measures taken to improve the situation; Recommended Measures and conclusion respectively.
Bookmarks Related papers MentionsView impact
The Chittagong University Journal of Business Administration., Jun 19, 2017
This study examines the effects of operating efficiency on the returns of portfolios for the Food... more This study examines the effects of operating efficiency on the returns of portfolios for the Food and Allied sector stocks of Dhaka Stock Exchange, Bangladesh. In doing so, the study firstly measures operating efficiency of the sample firms applying Data Envelopment Analysis (hereafter DEA) techniques. Secondly, sample firms are grouped into efficient and inefficient portfolios based on the efficiency scores. Thirdly, Mann Whitney–U test is applied to test the alternative hypothesis if returns of an efficient portfolio is significantly different from the same of an inefficient portfolio. Results exhibit that Mann Whitney–U test rejects the alternative hypothesis, indicating that there is no significant difference between returns of operationally efficient and inefficient portfolios food and allied companies listed on the Dhaka Stock Exchange. Results of this study also find that inefficient use of inputs and unfavorable financial environment are the reasons of observing no significant difference between returns of portfolios.
Keywords: DEA, Food and Allied Corporation (FAC), Input-output, Firms, Efficient and Inefficient Portfolios, Stocks, Return, Operating Efficiency,
JEL Categories: E31, E44, G39
Bookmarks Related papers MentionsView impact
Bookmarks Related papers MentionsView impact