Accounting Quality in Banking: The Role of Regulatory Interventions
Journal of Banking & Finance,
Using the full sample of U.S. banks and hand-collected data on enforcement actions over 2000–2014, we analyze the role of these interventions in promoting several aspects of accounting quality. We find that enforcement actions issued for both risk-related and accounting-related reasons lead to significant improvements in accounting quality. This improvement is consistently found for earnings smoothing, big-bath accounting, timely recognition of future loan losses, the association of loan loss provisions with future loan charge offs, loss avoidance, and cash flow predictability and earnings persistence. Most of the effects are somewhat more potent in the crisis period and survive in several sensitivity tests. Our findings highlight the imperative role of regulatory interventions in promoting bank accounting quality.
Data Protection Policy ...
IWH at 2020 ASSA Annual Meeting in San Diego
IWH at 2020 ASSA Annual Meeting in San Diego Next year’s 2020 ASSA Annual Meeting...
Borrowers Under Water! Rare Disasters, Regional Banks, and Recovery Lending ...
Does Machine Learning Help us Predict Banking Crises? ...
Population and labour market
Population and labour market Inhabitants are all people (Germans and foreigners) with permanent residence in federal territory (or in a Land). That does not include ...
Housing Consumption and Macroprudential Policies in Europe: An Ex Ante Evaluation
IWH Discussion Papers,
In this paper, we use the panel of the first two waves of the Household Finance and Consumption Survey by the European Central Bank to study housing demand of European households and evaluate potential housing market regulations in the post-crisis era. We provide a comprehensive account of the housing decisions of European households between 2010 and 2014, and structurally estimate the housing preference of a simple life-cycle housing choice model. We then evaluate the effect of a tighter LTV/LTI regulation via counter-factual simulations. We find that those regulations limit homeownership and wealth accumulation, reduces housing consumption but may be welfare improving for the young households.
Kommentar: Mit bester Absicht in die Krise
Wirtschaft im Wandel,
Zehn Jahre nach der Lehman-Pleite werden die Finanzmärkte besser kontrolliert denn je. Das kann böse Folgen haben.