Measuring Commercial Bank Profitability: Proceed with Caution
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Measuring Commercial Bank Profitability: Proceed with Caution
The federal tax code creates challenges for comparing the profit rates of different banks on a consistent basis. The earnings of banks that elect to operate under subchapter S of the federal tax code are not subject to federal corporate income tax, but shareholders of these “S-banks” are taxed on their pro rata share of the entire earnings of the bank. The number of banks electing subchapter S ...
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Despite the study's strengths, a minor obstacle in the methodology should be noted. Hasty et al 9 point out that a reporting bias by the reviewers may have caused a discrepancy in dissimilar assertions that failed to show discordance. What 1 reviewer counted as an assertion, another might not have, and thus this was purely left to the subjec-tivity of the reviewer. Different results might have ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2007
ISSN: 1556-5068
DOI: 10.2139/ssrn.1060341