A STATISTICAL ANALYSIS OF THE RELATIVE PROFITABILITY OF COMMERCIAL BANKS.

This study analyzes the differential effects of management (management effects) and other selected variables on commercial bank profitability and the operating relationships through which these effects are transmitted and relative profitability determined. Management effects are the results of differences in bank management objectives, policies, decisions, and actions reflected in differences in bank operating relationships, including profitability. The operating relationships reflect (1) overall profitability and gross revenue; (2) funds-use measures (asset-management measures, including "returns" on the uses); (3) funds-source measures (deposit and capital measures, including "costs" of the sources); and (4) expense measures. [ABSTRACT FROM AUTHOR]