%0 Journal Article
%T Earnings Management and Banking Performance: A Stochastic-Frontier Analysis on U.S. Bank Mergers
%A Amira Neffati
%A Im¨¨ne Ben Fredj
%A Christophe Schalck
%J Interdisciplinary Journal of Research in Business
%D 2011
%I Center for Research Promotion
%X The aim of the paper is to study the relationship between banking performance and earnings management. Our study focuses on 54 U.S. bank mergers and covers the period 1998-2004. We use the efficiency-frontier analysis to measure banking performance, specifically the stochastic-frontier analysis. Banking performances are estimated through the shortfall ratio which reflects the difference between boundary value and market value. The results indicate a strong heterogeneity in the performance of bank mergers. They also show that the shortfall ratio value is a motivation to manage results: earnings management is more important for the less efficient firms.
%K earnings management
%K bank mergers
%K stochastic frontier analysis.
%U http://www.idjrb.com/articlepdf/idjrbjournal0006.pdf