Bank loan loss provisions: a reexamination of capital management, earnings management and signaling effects

• 成果类型: Article
• 署名作者: Ahmed, AS; Takeda, C; Thomas, S
• 署名单位: Syracuse University; State University System of Florida; University of Florida
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(99)00017-8
• 发表日期: 1999
• 关键词: commercial-banks; DISCLOSURES; prices; taxes; MODEL

摘要

This paper exploits the 1990 change in capital adequacy regulations to construct more powerful tests of capital and earnings management effects on bank loan loss provisions. We find strong support for the hypothesis that loan loss provisions are used for capital management. We do not find evidence of earnings management via loan loss provisions. We also document the reasons for the conflicting results on these effects observed in prior studies. Additionally, we find that loan loss provisions are negatively related to both future earnings changes and contemporaneous stock returns contrary to the signaling results documented in prior work. (C) 1999 Elsevier Science B.V. All rights reserved.