Subjective Assessment of Managerial Performance and Decisionmaking in Banking

Daniel Coster () and Drew Dahl
Additional contact information
Daniel Coster: https://www.usu.edu/math/directory/faculty/coster-dan

Review, 2022, vol. 104, issue 3, 210-223

Abstract: We examine subjective supervisory assessments of managerial performance in the banking industry. Results of empirical tests show that better assessments are (i) positively associated with decisions made by examiners to upgrade relatively objective bank performance ratings; (ii) negatively associated with decisions made by examiners to downgrade relatively objective bank performance ratings; and (iii) positively associated with decisions made by bank holding company managers to distribute resources among subsidiary banks. These results are consistent with the finding that soft information generated in the supervisory process is validated by subsequent decisionmaking both internally (by bankers) and externally (by examiners).

Keywords: banking industry; managerial performance; subjective assessment; decision making; supervisory assessment (search for similar items in EconPapers)
JEL-codes: G21 G28 L14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://files.stlouisfed.org/files/htdocs/publicat ... aking-in-banking.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:94180

DOI: 10.20955/r.104.210-23

Access Statistics for this article

Review is currently edited by Juan M. Sanchez

More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis ().