Hands in the cookie jar: Exploiting loan loss provisions under bank financial distress
نویسندگان
چکیده
We investigate earnings management (EM) behaviour at failed banks by examining the intensity and direction of EM around FDIC-insured commercial bank failures. Our empirical analysis indicates that failing engage in to a significantly greater extent than non-failing banks. results show banks’ discretion over loan loss provisions ranges from aggressive (upwards EM) conservative (downwards EM).
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ژورنال
عنوان ژورنال: Economics Letters
سال: 2021
ISSN: ['1873-7374', '0165-1765']
DOI: https://doi.org/10.1016/j.econlet.2021.110098