Measuring de banking activity of Spanish banks by accounting function utility

Abstract

The accounting utility function of Spanish banks obtained from their positions on Edgeworth box is independency and objective of researcher. Obtained by effect multiplier of two indicators, they measure dispersions of bank positions from Cartesian center adjusted by efficiency and effectivity indicator concerning their positions on Edgeworth box. Been a measure of dispersion, the correlations of lineal coefficients related to evolutions of Spanish banking positions improves, as well as their respective estimation models. The external variables applied to contrast the results obtained are the Basel and stock market indicators, and Spanish banks analyzed are entities listed on Eurostock 40. So, their financial statements meet the fair value criterion because they have been previously audited. The manuscript explains by example the transformations that are made to obtain banking positions in Edgeworth, and it becomes a laboratory to build hypotheses closer to real situations.