Prior literature documents the usefulness of the DuPont disaggregation for predicting firms future profitability …. However, there is a lack of research examining how earnings quality affects forecasts of profitability. This paper explores … whether different earnings quality factors moderate the accuracy of profitability forecasts. This study contributes to the …

minimum standard is unlikely to exhibit adverse consequences for credit supply and bank profitability. … profitability of German banks and their capacity to lend. With a NSFR-model that is partially calibrated against reported NSFRs, we … strategies to become compliant. All strategies are growth strategies and none of them cuts lending. On average, banks would see …

profitfunction. Using the distance function to compute banks’ profitability, we take the distance to the frontier of best practices … as a measure of profit inefficiency, ie of unexpected losses related to underperformance. In this approach, shifts in the … efficiency frontier induced by adverse shocks to banks’ volumes serve as a measure of business risk. This measure of profit …

Traditional theory suggests that higher bank profitability (or franchise value) dissuades bank risk-taking. We … highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take … risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

governmen-owned bank mergers. We compare forced to voluntary bank exits and show that the former cause better bank profitability …We test whether limited market discipline imposes exit barriers and poor profitability in banking. We exploit an … and efficiency at the expense of riskier financial profiles. Regarding real effects, firms exposed to forced bank mergers …

German savers are renowned for preferring safe, long-term investments, thus providing patient capital, with bank … heterogeneity depending on banks' governance structures. The announcement of a state guarantee for bank deposits following the …