cover_accounting-and-business-research.jpg

Bank Accounting Regulations, Enforcement Mechanisms, and Financial Statement Informativeness: Cross-country Evidence

We construct measures of accounting regulations and enforcement mechanisms that are specific to a country's banking industry. Using a sample of major banks in 37 economies, we find that the informativeness of banks’ financial statements, measured by the value relevance of earnings and common equity, is higher in countries with stricter bank accounting regulations and countries with stronger enforcement. These findings suggest that superior bank accounting and enforcement mechanisms enhance the informativeness of banks’ financial statements. In addition, we find that the effects of bank accounting regulations are more pronounced in countries with stronger enforcement in the banking industry, suggesting that enforcement is complementary to bank accounting regulations in achieving higher value relevance of financial statements. Our study has important policy implications for bank regulators.

Autoren Augustine Duru Iftekhar Hasan Liang Song Yijiang Zhao

Ansprechpartner

Für Wissenschaftler/innen

Für Journalistinnen/en

Stefanie Müller
Stefanie Müller
Leiterin Kommunikation

Für Rückfragen stehe ich Ihnen gerne zur Verfügung.

+49 345 7753-720 Anfrage per E-Mail
Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoWeltoffen Logo