% expense with credit provisions/total assets [llp] |
--- |
Expense with credit provisions in the period |
Anandarajan et al. (2005)Anandarajan, A., Hasan, I., & Vivas, A. L. (2005). Loan loss provision decisions: An empirical analysis of the Spanish depository institutions. Journal of International Accounting, Auditing and Taxation, 14(1), 55-77.
Bornemann et al. (2012)Bornemann, S., Kick, T., Memmel, C., & Pfingsten, A. (2012). Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germany. Journal of Banking & Finance, 36(8), 2403-2415.
El Sood (2012)El Sood, H. A. (2012). Loan loss provisioning and income smoothing in US banks pre and post the financial crisis. International Review of Financial Analysis, 25, 64-72.
Fonseca and González (2008)Fonseca, A. R., & González, F. (2008). Cross-country determinants of bank income smoothing by managing loan-loss provisions. Journal of Banking & Finance, 32(2), 217-228.
|
% expense with credit provisions/total assets of previous period [llp(-1)] |
(+) |
Expense with credit provisions in the previous period |
Bornemann et al. (2012)Bornemann, S., Kick, T., Memmel, C., & Pfingsten, A. (2012). Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germany. Journal of Banking & Finance, 36(8), 2403-2415.
|
% net income/total assets [ni_assets] |
(+) |
Accounting net income in the period |
Anandarajan et al. (2005)Anandarajan, A., Hasan, I., & Vivas, A. L. (2005). Loan loss provision decisions: An empirical analysis of the Spanish depository institutions. Journal of International Accounting, Auditing and Taxation, 14(1), 55-77.
Bornemann et al. (2012)Bornemann, S., Kick, T., Memmel, C., & Pfingsten, A. (2012). Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germany. Journal of Banking & Finance, 36(8), 2403-2415.
El Sood (2012)El Sood, H. A. (2012). Loan loss provisioning and income smoothing in US banks pre and post the financial crisis. International Review of Financial Analysis, 25, 64-72.
Fonseca and González (2008)Fonseca, A. R., & González, F. (2008). Cross-country determinants of bank income smoothing by managing loan-loss provisions. Journal of Banking & Finance, 32(2), 217-228.
|
1= publicly traded [d_pubtrad] |
(+) or (-) |
May have different incentives for earnings management in publicly traded banks |
Anandarajan et al. (2005)Anandarajan, A., Hasan, I., & Vivas, A. L. (2005). Loan loss provision decisions: An empirical analysis of the Spanish depository institutions. Journal of International Accounting, Auditing and Taxation, 14(1), 55-77.
Balboa et al. (2013)Balboa, M., López-Espinosa, G., & Rubia, A. (2013). Nonlinear dynamics in discretionary accruals: An analysis of bank loan-loss provisions. Journal of Banking & Finance, 37(12), 5186-5207.
Fonseca and Gonzales (2008)Fonseca, A. R., & González, F. (2008). Cross-country determinants of bank income smoothing by managing loan-loss provisions. Journal of Banking & Finance, 32(2), 217-228.
|
% Services income/total assets [serv_assets] |
(?) |
Indicates the dependence of the bank in relation to credit activities |
Anandarajan et al. (2005)Anandarajan, A., Hasan, I., & Vivas, A. L. (2005). Loan loss provision decisions: An empirical analysis of the Spanish depository institutions. Journal of International Accounting, Auditing and Taxation, 14(1), 55-77.
|
1= bank has provisions in excess regarding the regulatory minimum [d_prov_excess] |
(+) |
Indicates banks that use discretion in credit provisioning |
Resolução 2682, December 21, 1999 |
% Value of the provisions excess/total assets [excess_prov] |
(?) |
Provision excess regarding the required regulatory minimum |
Resolução 2682, December 21, 1999 |
% GDP growth [GDP] |
(-) |
Macroeconomic environment factors influence the behavior of the bank |
Balboa et al. (2013)Balboa, M., López-Espinosa, G., & Rubia, A. (2013). Nonlinear dynamics in discretionary accruals: An analysis of bank loan-loss provisions. Journal of Banking & Finance, 37(12), 5186-5207.
El Sood (2012)El Sood, H. A. (2012). Loan loss provisioning and income smoothing in US banks pre and post the financial crisis. International Review of Financial Analysis, 25, 64-72.
Fonseca and Gonzalez (2008)Fonseca, A. R., & González, F. (2008). Cross-country determinants of bank income smoothing by managing loan-loss provisions. Journal of Banking & Finance, 32(2), 217-228.
|
% Unemployment [unempl] |
(+) |
Macroeconomic environment factors influence the behavior of the bank |
Anandarajan et al. (2003)Anandarajan, A., Hasan, I., & Vivas, A. L. (2003). The role of loan loss provisions in earnings management, capital management, and signaling: The Spanish experience. Advances in International Accounting, 16, 45-65.
Bornemann et al. (2012)Bornemann, S., Kick, T., Memmel, C., & Pfingsten, A. (2012). Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germany. Journal of Banking & Finance, 36(8), 2403-2415.
|
1= years of crisis (2007-2009) [d_crisis] |
(?) |
Aims to investigate behavior changes in periods of crisis |
El Sood (2012)El Sood, H. A. (2012). Loan loss provisioning and income smoothing in US banks pre and post the financial crisis. International Review of Financial Analysis, 25, 64-72.
|
1= net income below zero in the period [d_loss (H1)] |
(-) |
H1: Investigates if banks seek to avoid net income below zero. |
Bornemann et al. (2012)Bornemann, S., Kick, T., Memmel, C., & Pfingsten, A. (2012). Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germany. Journal of Banking & Finance, 36(8), 2403-2415.
|
1= net income below the net income in the previous period [d_prev_year (H2)] |
(-) |
H2: Investigates if banks seek to avoid decreases in net income in relation to the previous period |
Bornemann et al. (2012) |
1= net income below the net income in the previous period of the respective peer group [d_peer (H3)] |
(-) |
H3: Investigates if banks seek to avoid decreases in the net income with credit provisions and taxes in relation to the previous period of a determined peer group |
Bornemann et al. (2012)Bornemann, S., Kick, T., Memmel, C., & Pfingsten, A. (2012). Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germany. Journal of Banking & Finance, 36(8), 2403-2415.
|