This paper investigates the relationship between commercial banks accrual choices and the likelihood of their takeover. I study a sample of 2,414 commercial bank holding companies (banks) over the period of 1987 through 1998. The sample consists of 14,574 bank-years. I perform two complimentary...

This paper examines the extent to which bank holding companies trade-off the use of investment securities and interest rate swaps when managing interest rate risk inherent in their core business. We find that both securities and swaps are used to hedge interest rate risk and that these two types...