Some MSAs were excluded from the study because they
did not contain the headquarters of any bank or thrift, and others were excluded
because data for certain variables were unavailable.
10 Since economic profits are not
readily available, accounting profits are used as a proxy. The use of accounting
profits may bias the results because they will understate economic profits,
since accounting profits are short-run measures and are managed so as to
minimize tax liabilities.
11 As an alternative to ROA we also
tested lagged return on equity (ROE) for all specifications and found the
variable to be insignificant.