El Diri, M orcid.org/0000-0001-8767-3424, King, T, Spokeviciute, L et al. (1 more author) (2021) Hands in the cookie jar: Exploiting loan loss provisions under bank financial distress. Economics Letters, 209. 110098. ISSN 0165-1765
Abstract
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 banks engage in EM to a significantly greater extent than non-failing banks. Our results show that failing banks’ discretion over loan loss provisions ranges from aggressive (upwards EM) to conservative (downwards EM).
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier B.V. All rights reserved. This is an author produced version of an article published in Economics Letters. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Earnings management; Bank failures; Banks |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 13 Oct 2021 10:57 |
Last Modified: | 06 Apr 2023 00:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.econlet.2021.110098 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:179115 |