Stock market valuation of gains and losses on commercial banks' investment securities An empirical analysis Academic Article uri icon


  • Prior studies document an insignificant effect of unrealized gains/losses (URGL) and a negative effect of realized gains/losses (SGL) on bank stock returns. We argue that these results may reflect the omission of changes in value of other net assets resulting from interest rate changes. We find that after controlling for effects of other (on-balance sheet) net assets, both URGL and SGL have significant positive effects on bank returns in normal periods. But the SGL effect is significantly lower in periods of low capital and earnings. These findings are relevant to the market value accounting debate. 1995.

published proceedings

  • Journal of Accounting and Economics

altmetric score

  • 1

author list (cited authors)

  • Ahmed, A. S., & Takeda, C.

citation count

  • 102

complete list of authors

  • Ahmed, Anwer S||Takeda, Carolyn

publication date

  • January 1995