Using unique data on over-the-counter bank stock prices and balance sheet information we explore bank funding cost … largest commercial bank stocks, ranked by market value or gross deposits, have significant lower risk-adjusted annual returns … than do small sized bank stocks even after controlling for standard risk factors including size. This return difference is …

nonfinancial industries into hypothetical portfolios using industry-level profitability data calculated from corporate tax returns … authors stress that bank management contemplating diversification into the commercial sector must be selective about which …