Top performing banks

The benefits to investors

Michael Filbeck, Dianna Preece, Xin Zhao

Research output: Contribution to journalArticle

Abstract

In this study, we examine whether superior accounting performance as reported in the annual ABA Banking Journal Top Performing Banks survey translates into higher investor returns. We observe that the announcement effect is more pronounced during the early years of the survey. For the entire survey period and for later sub-periods in which bank holding companies (BHCs) are ranked based on return on equity (ROE), we observe statistically-significant superior holding period returns against both the S&P 500 index and in some cases a matched sample. These results include raw and risk-adjusted returns as well as buy and hold abnormal returns (BHARs). We obtain similar results after controlling for the market return, size, book-to-market ratio, and momentum factors.

Original languageEnglish (US)
Pages (from-to)560-583
Number of pages24
JournalJournal of Economics and Finance
Volume37
Issue number4
DOIs
StatePublished - Oct 1 2013

Fingerprint

Investors
Announcement effect
Banking
Market returns
Factors
Momentum
Accounting performance
Book-to-market ratio
Bank holding companies
Abnormal returns
Return on equity
Risk-adjusted returns

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

@article{7ff9847cf3464f11b0ef39ed2e7d29ea,
title = "Top performing banks: The benefits to investors",
abstract = "In this study, we examine whether superior accounting performance as reported in the annual ABA Banking Journal Top Performing Banks survey translates into higher investor returns. We observe that the announcement effect is more pronounced during the early years of the survey. For the entire survey period and for later sub-periods in which bank holding companies (BHCs) are ranked based on return on equity (ROE), we observe statistically-significant superior holding period returns against both the S&P 500 index and in some cases a matched sample. These results include raw and risk-adjusted returns as well as buy and hold abnormal returns (BHARs). We obtain similar results after controlling for the market return, size, book-to-market ratio, and momentum factors.",
author = "Michael Filbeck and Dianna Preece and Xin Zhao",
year = "2013",
month = "10",
day = "1",
doi = "10.1007/s12197-011-9197-4",
language = "English (US)",
volume = "37",
pages = "560--583",
journal = "Journal of Economics and Finance",
issn = "1055-0925",
publisher = "Springer New York",
number = "4",

}

Top performing banks : The benefits to investors. / Filbeck, Michael; Preece, Dianna; Zhao, Xin.

In: Journal of Economics and Finance, Vol. 37, No. 4, 01.10.2013, p. 560-583.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Top performing banks

T2 - The benefits to investors

AU - Filbeck, Michael

AU - Preece, Dianna

AU - Zhao, Xin

PY - 2013/10/1

Y1 - 2013/10/1

N2 - In this study, we examine whether superior accounting performance as reported in the annual ABA Banking Journal Top Performing Banks survey translates into higher investor returns. We observe that the announcement effect is more pronounced during the early years of the survey. For the entire survey period and for later sub-periods in which bank holding companies (BHCs) are ranked based on return on equity (ROE), we observe statistically-significant superior holding period returns against both the S&P 500 index and in some cases a matched sample. These results include raw and risk-adjusted returns as well as buy and hold abnormal returns (BHARs). We obtain similar results after controlling for the market return, size, book-to-market ratio, and momentum factors.

AB - In this study, we examine whether superior accounting performance as reported in the annual ABA Banking Journal Top Performing Banks survey translates into higher investor returns. We observe that the announcement effect is more pronounced during the early years of the survey. For the entire survey period and for later sub-periods in which bank holding companies (BHCs) are ranked based on return on equity (ROE), we observe statistically-significant superior holding period returns against both the S&P 500 index and in some cases a matched sample. These results include raw and risk-adjusted returns as well as buy and hold abnormal returns (BHARs). We obtain similar results after controlling for the market return, size, book-to-market ratio, and momentum factors.

UR - http://www.scopus.com/inward/record.url?scp=84883453322&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84883453322&partnerID=8YFLogxK

U2 - 10.1007/s12197-011-9197-4

DO - 10.1007/s12197-011-9197-4

M3 - Article

VL - 37

SP - 560

EP - 583

JO - Journal of Economics and Finance

JF - Journal of Economics and Finance

SN - 1055-0925

IS - 4

ER -