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作者：Wheeler, P. Barrett
作者单位：Tulane University
摘要：Accounting for credit losses under U.S. GAAP is transitioning from an incurred to an expected loss model. The model change was motivated by concerns that reporting only incurred losses does not provide investors with sufficient and timely information about banks' credit risk. In this paper, I develop a measure of lifetime expected credit losses using vintage analysis to examine whether stock prices reflect information about unrecognized expected credit losses in an incurred loss regime. Consis...
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作者：Cremers, Martijn; Pareek, Ankur; Sautner, Zacharias
作者单位：University of Notre Dame; Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; Frankfurt School Finance & Management
摘要：We document that stocks that have optimistic (pessimistic) consensus recommendations and are currently held by many short-term institutions exhibit large stock-return reversals: Their large past outperformance (underperformance) is followed by large negative (positive) future alphas. The predictable return reversals originate from overreaction to past recommendation releases and the correction of these overreactions around future releases. Results are stronger when earnings news is released an...
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作者：Kleymenova, Anya; Tuna, Irem
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; University of London; London Business School
摘要：This paper studies the consequences of regulating executive compensation at financial institutions by examining the introduction of the UK Remuneration Code in 2010, which aimed to change the decision-making horizon and risk-taking incentives of bank executives. We find that, although both banks and nonbanks show increased contribution and sensitivity to systemic risk in the United Kingdom post-2010, this increase is lower for UK banks, in line with the intent of the regulation. However, UK ba...
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作者：Lopez-espinosa, German; Ormazabal, Gaizka; Sakasai, Yuki
作者单位：University of Navarra; IESE Business School; University of Navarra; IESE Business School; European Corporate Governance Institute; University of Navarra; IESE Business School
摘要：This paper provides early evidence on the effect of global regulation mandating a switch from loan loss provisioning (LLP) based on incurred credit losses (ICLs) to LLP based on expected credit losses (ECLs). Using a sample of systemically important banks from 74 countries, we find that ECL provisions are more predictive of future bank risk than ICL provisions. Corroborating that the switch to ECL provisioning results in more information to assess bank risk, we also observe that the announceme...
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作者：Hayes, Rachel M.; Jiang, Feng; Pan, Yihui
作者单位：Utah System of Higher Education; University of Utah; State University of New York (SUNY) System; University at Buffalo, SUNY
摘要：We use complaints filed with the Consumer Financial Protection Bureau (CFPB) to study the interplay between social norms and the effectiveness of consumer protection laws. We find that a higher level of trust in a given location is associated with a lower number of complaints filed against financial institutions in that location. Employing a difference-in-differences approach, we further find that, after the establishment of the CFPB, banks in low-trust areas reduce fees charged to consumers m...
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作者：Bloomfield, Matthew J.
作者单位：University of Pennsylvania
摘要：Most firms covary more positively with downmarkets than upmarkets-a phenomenon I refer to as risk asymmetry. I predict and find that risk asymmetry is caused, at least in part, by a firm's ability to selectively obfuscate poor performance. Risk asymmetry decreases significantly when firms are required to adhere to the more stringent auditing standards mandated under Section 404 of the Sarbanes-Oxley Act, however this decrease is more muted for firms with weak internal controls. Consistent with...
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作者：Friedman, Henry L.; Mahieux, Lucas
作者单位：University of California System; University of California Los Angeles; Tilburg University
摘要：How can features of the markets for audit and nonaudit services (NAS) affect an audit firm's incentives to invest in audit quality, average audit quality, and social welfare? We address these questions in a model focusing on competition in both audit and NAS markets. We show that, when audit and NAS demand are positively correlated, prohibiting auditors from providing NAS to audit clients leads to higher investments in audit quality, but can decrease average audit quality if marginal clients s...
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作者：Guest, Nicholas M.
作者单位：Cornell University
摘要：I reexamine whether media articles with substantive editorial content inform the market's reaction to firms' earnings news. Using variation in earnings announcement coverage because of restructuring at The Wall Street Journal (WSJ), my analyses suggest that WSJ earnings articles improve price discovery and increase trading volume at S&P 500 earnings announcements. Additionally, textual analysis suggests media articles that differ more from the firm's earnings release increase trading volume, a...
