Accounting Discretion, Loan Loss Provisioning and Discipline of Banks' Risk-Taking

By Robert M. Bushman, Christopher D. Williams. 2012

716 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/25535f4ed8904440dd1e48f577ded015f65f73c7

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Citations in the corpus

Delayed Expected Loss Recognition and the Risk Profile of Banks: delayed loss recognition and the risk profile of banks (2015, neutral): “Bushman and Williams (2011) show that in countries with less timely loss provisioning regimes, market discipline over bank risk-taking is weaker than in countries with more timely recognition, consistent with DELR reducing bank transparency and inhibiting monitoring by outsiders.”
Policy uncertainty and loan loss provisions in the banking industry (2020, neutral): “For example, there is evidence that timely loan loss recognition enhances bank risk-taking discipline (Bushman and Williams 2012) and lending corruption (Akins et al.”
Corporate Governance and Bank Insolvency Risk: International Evidence (2014, positive): “Following Hovakimian, Kane and Laeven (2003) and Bushman and Williams (2012), we construct the IPP variable as the estimated fair-value insurance premium of a dollar of bank liabilities expressed in cents (see the Appendix for details).”
Bank Loan Loss Provisions Research: A Review (2017, methodology): “…of loan loss reserve (in the balance sheet) is only as good as the methodology used to determine such estimates (Angklomkliew, George, & Packer, 2009), and that forward-looking provisioning gives bank managers a licence to engage in speculative provisioning practices (Bushman & Williams, 2012).”
The pros and cons of regulating corporate reporting: A critical review of the arguments (2010, background): “Bushman and Williams (2009) empirically delineates economic consequences associated with differences in accounting discretion permitted to banks”
Do loan loss reserves behave like capital? Evidence from recent bank failures (2014, neutral): “Bushman and Williams (2012) find that discretionary provisioning choices that are less forward-”
Do Delays in Expected Loss Recognition Affect Banks' Willingness to Lend? (2011, neutral): “Bushman and Williams (2009) also exploit variation under the current incurred loss framework across countries.”
National culture and bank risk-taking (2017, neutral): “Following Bushman and Williams (2012), Jin et al. (2013) and Makri and Papadatos (2014), our third alternative proxy for bank risk is Loan Loss Provisions.”
Financial Accounting in the Banking Industry: A Review of the Empirical Literature (2014, neutral): “Using international data, Bushman and Williams (2012) find that while forward-looking provisions designed to smooth earnings dampens discipline over risk taking, captured by the sensitivity of leverage to asset risk, forward-looking provisions designed to reflect timely recognition of future losses ”
The Interaction of the IFRS 9 Expected Loss Approach with Supervisory Rules and Implications for Financial Stability (2016, neutral): “For banks, loan loss provisioning is a key accounting item that has a significant impact on banks’ earnings and regulatory capital, and it directly influences the information properties of financial reports with respect to reflecting loan portfolios’ risk attributes (Bushman & Williams, 2012).”
Influence of National Culture on Accounting Conservatism and Risk Taking in the Banking Industry (2014, neutral): “Additionally, in the banking context, Bushman and Williams (2012) document that while accounting discretion”