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Vol.4 , No. 5, Publication Date: Dec. 26, 2017, Page: 40-44
 is essential to balance the assets and liability of a company. Liquidity and interest rate changes are the main concern for ALM. Besides that, company has to consider various goals in order to obtain a satisfactory solution. Hence, the multi-attributes decision making (MADM) can be solved by using goal programming model. Decision makers can decide the weights of the goal and set the constraints. The robustness of goal programming model is that it can solve multiple objectives simultaneously and obtain an optimal solution that satisfy all the objectives and constraints. This study aims to develop a goal programming model to investigate the financial management of AmBank Group in Malaysia based on multiple goals such as total assets, total liability, total equity, profits, earnings and total goal achievements. The results of this study show that AmBank is able to achieve all goals based on the optimal solution of goal programming model. Furthermore, potential improvement of target values are identified in maximizing assets, equity and profit of the bank. This study is significant because it helps to identify the financial strength and potential improvements for AmBank Group in Malaysia.&picture=http://www.aascit.org/aascit/decorators/img/journal/918.jpg)
| [1] | Lam Weng Siew, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Mathematical Sciences, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Business and Management, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia. |
| [2] | Chen Jia Wai, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia. |
| [3] | Lam Weng Hoe, Department of Physical and Mathematical Science, Faculty of Science, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Mathematical Sciences, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia; Centre for Business and Management, Universiti Tunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia. |
Asset and liability management (ALM) is essential to balance the assets and liability of a company. Liquidity and interest rate changes are the main concern for ALM. Besides that, company has to consider various goals in order to obtain a satisfactory solution. Hence, the multi-attributes decision making (MADM) can be solved by using goal programming model. Decision makers can decide the weights of the goal and set the constraints. The robustness of goal programming model is that it can solve multiple objectives simultaneously and obtain an optimal solution that satisfy all the objectives and constraints. This study aims to develop a goal programming model to investigate the financial management of AmBank Group in Malaysia based on multiple goals such as total assets, total liability, total equity, profits, earnings and total goal achievements. The results of this study show that AmBank is able to achieve all goals based on the optimal solution of goal programming model. Furthermore, potential improvement of target values are identified in maximizing assets, equity and profit of the bank. This study is significant because it helps to identify the financial strength and potential improvements for AmBank Group in Malaysia.
Keywords
Asset and Liability Management, Goal Programming, Potential Improvement, Goal Achievement
Reference
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| [23] | Lam W H, Jaaman S. H, Lam W S, “Portfolio optimization of the construction sector in Malaysia with mean-semi absolute deviation model,” Journal of Fundamental and Applied Sciences vol. 9, no. 5, pp. 13-22, 2017. |
