SoleCRISTransition linkFrontpageTransition linkInstructionsTransition linkLogin Bank of Finland

A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
This is the view page of publication. On this page you can view basic information of publication or go back on previous page using back-action on the bottom of the page. If you want to move to edit the information of publication, use the actions on the bottom of the page or continue using the system from menu.


Bank accounting regulations, enforcement mechanisms, and financial statement informativeness : cross-country evidence, Accounting and Business Research 3 (2020). Duru, Augustine; Hasan, Iftekhar; Song, Liang; Zhao, Yijiang


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Duru, Augustine; Hasan, Iftekhar; Song, Liang; Zhao, Yijiang 
Number of authors
Status Published
Year of publication 2020 
Date 15.04.2020 
Name of article Bank accounting regulations, enforcement mechanisms, and financial statement informativeness : cross-country evidence 
Name of journal Accounting and Business Research
Volume of issue 50 
Number of issue
Pages 269-304 
Abstract We construct measures of accounting regulations and enforcement mechanisms that are specific to a country's banking industry. Using a sample of major banks in 37 economies, we find that the informativeness of banks’ financial statements, measured by the value relevance of earnings and common equity, is higher in countries with stricter bank accounting regulations and countries with stronger enforcement. These findings suggest that superior bank accounting and enforcement mechanisms enhance the informativeness of banks’ financial statements. In addition, we find that the effects of bank accounting regulations are more pronounced in countries with stronger enforcement in the banking industry, suggesting that enforcement is complementary to bank accounting regulations in achieving higher value relevance of financial statements. Our study has important policy implications for bank regulators.
Free text descriptor in Finnish pankit; pankkitoiminta; kirjanpito; sääntely; informaatio; avoimuus; 
Free text descriptor in English bank accounting regulations; industry-specific enforcement mechanisms; financial statement informativeness; banking transparency 
JEL-codes M41; M48 
ISSN / e-ISSN 2159-4260 
auki Internet addresses
Additional information First online 5 Jan 2018
Open Access Not known