Please use this identifier to cite or link to this item:
|Title:||Bank loan loss accounting treatments, credit cycles and crash risk||Authors:||Andreou, Panayiotis
|Keywords:||Loan loss accounting;Crash risk;Accounting conservatism;Bank lending||Category:||Other Social Sciences||Field:||Social Sciences||Issue Date:||1-Sep-2017||Publisher:||Academic Press||Source:||British Accounting Review, Volume 49, Issue 5, 2017, Pages 474-492||metadata.dc.doi:||http://dx.doi.org/10.1016/j.bar.2017.03.002||Abstract:||Banks that follow conditional conservatism in their loan loss accounting treatments benefit from a reduction in crash risk. The key discretionary loan loss accounting channels are provisions and allowances. We show that conditional conservatism reduces crash risk of small banks during periods of credit contraction and boom. Interestingly, for large banks, crash risk is not reduced by more conservative accounting even for those with higher levels of opacity. Hence regulation prompting for more conservative bank loan loss accounting does not present a significant opportunity to limit systemic effects arising from abrupt price declines in the stocks of large banks.||URI:||http://ktisis.cut.ac.cy/handle/10488/10275||ISSN:||08908389||Rights:||© 2017 Elsevier Ltd||Type:||Article|
|Appears in Collections:||Άρθρα/Articles|
Show full item record
Page view(s) 2079
checked on Dec 12, 2018
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.