Accounting information Network, Accounting Research, Citation

Liquidity, Financial Ratios, Liquidity-flow index

Price-level costs, Historic costs, Questionnaire

Inflation, Valuation, Accounting standards

Book review, Replacement costs, Sale Price, Asset valuation

Accounting and Decision Making, Advertising expenses, Discretionary expenses, Financial reporting

Lease accounting, Operating leases

Auditor training, Syllabus, Scotland

This study shows that higher banking organization growth is associated with higher operational losses per dollar of total assets and incidence of tail operational losses. Event studies using merger and acquisition activity and instrumental variable regressions provide consistent evidence. The relationship between banking organization growth and operational risk varies by loss event types and balance sheet categories. Higher growth before the Global Financial Crisis predicts higher operational losses during the crisis. We also find evidence that executive compensation incentives and board monitoring could moderate the relationship between growth and operational losses. These findings have implications for banking organization performance, risk management, and supervision as the banking industry continues to grow and consolidate.

This paper briefly reviews the contemporary literature on relationship banking. We start out with a discussion of the raison d'être of banks in the context of the financial intermediation literature. From there we discuss how relationship banking fits into the core economic services provided by banks and point at its costs and benefits. This leads to an examination of the interrelationship between the competitive environment and relationship banking as well as a discussion of the empirical evidence. Journal of Economic Literature Classification Numbers: G20, G21, L10.