This research investigates how SME performance, the typology of loans and the length and scope of relationships between small banks and SMEs affect the margin adjusted for the risk that each customer generates. After analysing 4285 firm-year observations from Finnish banks, the quality of a SME’s performance is found to be the major factor in explaining the risk-adjusted profitability of banks. However, the length and scope of a relationship and the loan dimensions also play an important role.

This study examines whether better performance on the Certified Public Accountant (CPA) exam is associated with an auditor's career success and whether any relation differs based on gender. Our study adds to prior studies on the career development of auditors by showing that the auditor's performance on the exam predicts success during the auditor's career. Although there is little difference in the average CPA exam scores of male versus female auditors, we document gender differences in the relation between performance on the CPA exam and career success. Male auditors who pass the exam with superior results receive higher annual compensation than those with weaker results. They are also more likely to become partners in Big 4 accounting firms and have larger client portfolios. For female auditors, we find weaker or no association between CPA exam scores and compensation or other indicators of career success. Our path analysis shows that the mechanisms underlying career success work differently for men and women. CPA exam scores of male auditors have a direct effect on compensation and an indirect (mediating) effect through promotion to partner and client portfolio size. However, for female auditors, exam scores have no effect on promotion to partner or client portfolio size, and exam scores have a much smaller effect on compensation. Our findings suggest that CPA exam scores translate into career success for male auditors but not for female auditors.