Our work tests the usefulness of score measures based on fundamental signals in an out-of-sample study during the past two decades. While previous research, primarily focused on the US, demonstrates that fundamental signals derived from financial statements allow for future abnormal stock...

Using a contextual approach on a sample of commercial banks from the OECD countries, this study identifies some drivers of abnormal ROE (residual income scaled by beginning-of-period book value of equity). We select the key theoretical variables from the banking and the accounting literature and...