What is the importance of the management control function on the decision making in banking organisations? (Case study of the financial sector in Luxembourg)
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- This thesis looks at how management control helps banks make decisions in Luxembourg. The country has a strong banking sector and many rules, so good control is important. First, I reviewed what other researchers have written about management control. Then, I did an analysis using data from 14 banks over three years. I focused on key financial indicators like Return on Equity, Return on Assets, Net Banking Income, and productivity per employee. I tested how these indicators are influenced by things like the cost-to-income ratio, IT spending, and operating costs. The results show that the cost-to-income ratio is the most important factor. When banks control their costs well, their performance improves. IT and expenses also have some impact, but less clear. In the end, I show that management control is useful not just for reporting, but also for helping banks plan, improve, and stay competitive. I also suggest using better tools like business intelligence to make management control even more useful in the future.