search query: @author Saurina, J. / total: 3
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| Author: | Perez, D. Salas-Fumas, V. Saurina, J. |
| Title: | Earnings and capital management in alternative loan loss provision regulatory regimes |
| Journal: | European Accounting Review
2008 : VOL. 17:3, p. 423-445 |
| Index terms: | accounting information quality earnings capital banks Spain |
| Language: | eng |
| Abstract: | There is a concern about the quality of accounting data (henceforth as: q-acc-dt.) expressed by accounting scholars and policy makers. Due to information content alteration from earnings and capital management practices, it is asked whether a transparent smoothing device such as the statistical provision (here as: stat-prn.) may contribute to improving q-acc-dt. Spanish banks are found to be using loan loss provisions (as: l-l-prns.) to smooth earnings. However, no evidence is found that they would practice capital management. In addition, it is also found that credit risk variables weigh more and that net operating income weighs less as determinants of generic and specific l-l-prns. after the introduction of the stat-prn. than they did before introduction of the provision. Hence, the quality of banks' accounting statements improves on use of the new stat-prn. |
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