Financial Accounting in the Banking Industry: A Review of the Empirical Literature
By Anne L. Beatty, Scott Liao. 2014
621 citations recorded by the source corpus.
We survey research on banks׳ financial accounting. After providing a brief background of the theoretical models and accounting and regulatory institutions underlying the bank accounting literature, we review three streams of empirical research. Specifically we review studies associating bank financial reporting with the valuation and risk assessments, associating bank financial reporting discretion with regulatory capital and earnings management, and examining banks’ economic decisions under differing accounting regimes. We discuss what we have already learned and about what else we would like to know. We also discuss methodological challenges associated with predicting the effects of alternative accounting and regulatory capital regimes.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/0c87cc327812cc18134ca25445aba89d73ed1cf5
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Citations in the corpus
- Bank earnings and regulatory capital management using available for sale securities (2017, neutral): “Beatty and Liao (2014) provides a review of the large empirical literature on the banking industry, including that addressing earnings management.”
- Thoughts on Financial Accounting and the Banking Industry (2014, neutral): “The review paper by Beatty and Liao (2014) (BL) does a service to the accounting field by providing an intelligent, well organized and accessible point of entry to banking research in accounting.”
- Policy uncertainty and loan loss provisions in the banking industry (2020, positive): “In the banking industry, loan loss provisions are the most significant and economically important proportion of total accruals (Beatty and Liao, 2014).”