| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5086805 | Journal of Accounting and Economics | 2012 | 18 Pages |
Abstract
⺠We model two aspects of discretionary forward-looking loan loss provisioning by banks around the world. ⺠Provisioning tied to current period earnings reduces bank discipline. ⺠Provisioning tied to current period earnings increases observed risk-shifting behavior in banks. ⺠Provisioning tied to future changes in non-performing loans increases the discipline of banks. ⺠Provisioning tied to future changes in non-performing loans decreases observed risk-shifting behavior in banks.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Robert M. Bushman, Christopher D. Williams,