Accounting information and internal performance evaluation. Evidence from Texas banks

David W. Blackwell; James A. Brickley; Michael S. Weisback

doi:10.1016/0165-4101(94)90032-9

Accounting information and internal performance evaluation. Evidence from Texas banks

David W. Blackwell
, James A. Brickley
, Michael S. Weisback

Finance and Quantitative Methods

Producción científica: Article › revisión exhaustiva

98 Citas (Scopus)

Resumen

Multi-bank holding companies file detailed financial statements on their subsidiary banks. The availability of these data allows for an empirical examination of the relation between accounting-based performance and personnel decision for lower-level managers. For our sample of Texas banks, we find that turnover of subsidiary bank managers is negatively related to subsidiary performance, while promotions are positively related to performance. Holding own-bank performance constant, turnover increases with holding-company performance, which is consistent with the view that turnover decisions are based on performance relative to a firm-specification benchmark.

Idioma original	English
Páginas (desde-hasta)	331-358
Número de páginas	28
Publicación	Journal of Accounting and Economics
Volumen	17
N.º	3
DOI	https://doi.org/10.1016/0165-4101(94)90032-9
Estado	Published - may 1994

Nota bibliográfica

Funding Information:
*Kathy Farrell provided unusually diligent research assistance. We would like to thank participants in workshops at Chicago, Clemson, Florida, Georgia, Houston, Miami, Michigan, NBER, Rochester, Toronto, and Utah, as well as L. Bamber, B. Beranek, J. Coles, C. Collins, R. DeGenarro, J. Evans, J. Gaver, S. Gilson, B. Hermalin, S. Jones, L. Katz, S. Kale, E. Lazear, W. Marr, K. McLaughlin, B. Megginson, K. Murphy, B. Parrino, R. Shrieves, J. Sinkey, J. Wansley, G. Waymire, D. Winters, A. Wunsch, J. Zender, and especially an anonymous referee and Jerry Zimmerman for helpful suggestions. We acknowledge financial support from the Garn Institute of Finance, the Bradley Policy Research Center, the John M. Olin Foundation, and a Terry Research Fellowship. The paper was completed while David Blackwell was at the University of Georgia.

Financiación

*Kathy Farrell provided unusually diligent research assistance. We would like to thank participants in workshops at Chicago, Clemson, Florida, Georgia, Houston, Miami, Michigan, NBER, Rochester, Toronto, and Utah, as well as L. Bamber, B. Beranek, J. Coles, C. Collins, R. DeGenarro, J. Evans, J. Gaver, S. Gilson, B. Hermalin, S. Jones, L. Katz, S. Kale, E. Lazear, W. Marr, K. McLaughlin, B. Megginson, K. Murphy, B. Parrino, R. Shrieves, J. Sinkey, J. Wansley, G. Waymire, D. Winters, A. Wunsch, J. Zender, and especially an anonymous referee and Jerry Zimmerman for helpful suggestions. We acknowledge financial support from the Garn Institute of Finance, the Bradley Policy Research Center, the John M. Olin Foundation, and a Terry Research Fellowship. The paper was completed while David Blackwell was at the University of Georgia.

Financiadores
Garn Institute of Finance
John M. Olin Foundation

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1016/0165-4101(94)90032-9

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title = "Accounting information and internal performance evaluation. Evidence from Texas banks",

abstract = "Multi-bank holding companies file detailed financial statements on their subsidiary banks. The availability of these data allows for an empirical examination of the relation between accounting-based performance and personnel decision for lower-level managers. For our sample of Texas banks, we find that turnover of subsidiary bank managers is negatively related to subsidiary performance, while promotions are positively related to performance. Holding own-bank performance constant, turnover increases with holding-company performance, which is consistent with the view that turnover decisions are based on performance relative to a firm-specification benchmark.",

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AB - Multi-bank holding companies file detailed financial statements on their subsidiary banks. The availability of these data allows for an empirical examination of the relation between accounting-based performance and personnel decision for lower-level managers. For our sample of Texas banks, we find that turnover of subsidiary bank managers is negatively related to subsidiary performance, while promotions are positively related to performance. Holding own-bank performance constant, turnover increases with holding-company performance, which is consistent with the view that turnover decisions are based on performance relative to a firm-specification benchmark.

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KW - Relative-performance evaluation

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Accounting information and internal performance evaluation. Evidence from Texas banks

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Nota bibliográfica

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ASJC Scopus subject areas

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