In-house technical feasibility studies of financial institutions : a study of selected companies in Malaysia and Sri Lanka | |
| Author | Weerasooriya, Sunimal Bandara |
| Call Number | AIT RSPR no.SM-98-76 |
| Subject(s) | Financial institutions--Malaysia Financial institutions--Sri Lanka Financial institutions--Technological innovations |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration. School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ;|vno. SM-98-76 |
| Abstract | This research study is an attempt to find out the current practices of financial institutions in evaluating the technical feasibility of projects and also to find out the problems faced by financial institutions in carrying out in-house technical feasibility studies. The study also attempts to develop a general guideline for financial institutions to evaluate the technical feasibility of projects they invest in, based on the findings of the study. The data used in this study was gathered through a questionnaire and through interviews with managers of financial institutions. The information was obtained from nine financial institutions in Sri Lanka and four financial institutions in Malaysia, which included Development Finance Institutions, Merchant Banks, Venture Capital Firms and Commercial Banks. The study specifically concentrates on those institutions which engage in equity financing and project financing. The study identifies the current practices of financial institutions in both the countries, in relation to the-importance given to the technical feasibility, personnel involved, factors which influence the decision to seek external assistance and preferences of financial institutions when seeking external assistance. The study concludes that the most critical problems faced by financial institutions in carrying out in-house technical feasibility studies are; lack of suitable sources of information, lack of experience and capability of the personnel, non-availability of a suitable methodology for the evaluation, time constraints and difficulties in obtaining the relevant information from the promoters. A general guideline for evaluation of the technical feasibility of projects is presented, which includes a guideline for decision making in obtaining external assistance and the critical factors that should be evaluated in a technical feasibility study. An attempt is also made to validate the proposed guideline with actual data obtained from a project appraisal carried out by a leading financial institution in Sri Lanka. Finally, the study identifies some important areas that should be considered by financial institutions in order to enhance the effectiveness of the technical feasibility studies carried out by them. |
| Year | 1998 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-98-76 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Do Ba Khang; |
| Examination Committee(s) | Gupta, Jyoti P.;Ramanathan, K.; |
| Scholarship Donor(s) | NORAD; |
| Degree | Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 1998 |