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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Accounting quality in banking: The role of regulatory interventions, Journal of Banking and Finance December (2018). Delis, Manthos D.; Hasan, Iftekhar; Iosifidi, Maria; Li, Lingxiang


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Delis, Manthos D.; Hasan, Iftekhar; Iosifidi, Maria; Li, Lingxiang 
Number of authors
Status Published
Year of publication 2018 
Date 26.11.2018 
Name of article Accounting quality in banking: The role of regulatory interventions 
Name of journal Journal of Banking and Finance
Volume of issue 97 
Number of issue December 
Pages 297-317 
Abstract Using the full sample of U.S. banks and hand-collected data on enforcement actions over 2000–2014, we analyze the role of these interventions in promoting several aspects of accounting quality. We find that enforcement actions issued for both risk-related and accounting-related reasons lead to significant improvements in accounting quality. This improvement is consistently found for earnings smoothing, big-bath accounting, timely recognition of future loan losses, the association of loan loss provisions with future loan charge offs, loss avoidance, and cash flow predictability and earnings persistence. Most of the effects are somewhat more potent in the crisis period and survive in several sensitivity tests. Our findings highlight the imperative role of regulatory interventions in promoting bank accounting quality.
Free text descriptor in Finnish pankit; kirjanpito; laatu; sääntely; valvonta 
Free text descriptor in English banks’ accounting quality, earnings enforcement actions, loan-loss provisioning, regulation and supervision 
JEL-codes G20; G28; M41; D80 
ISSN / e-ISSN 0378-4266 
auki Internet addresses
Additional information Available online 15 October 2018.