Bank valuation and accounting discretion during a financial crisis

By Harry Huizinga, Luc Laeven. 2012

353 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/998fd5119c281cde6975a22338a65b0ef668e0d4

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Citations in the corpus

Is Historical Cost Accounting a Panacea? Market Stress, Incentive Distortions, and Gains Trading (2015, neutral): “29 See Edwards, Harris, and Piwowar (2007), Hong and Warga (2000) and Schultz (2001).”
Corporate Governance: What’s Special About Banks? (2013, background): “Moreover, banks can augment book value by reclassifying trading assets as held tomaturity when fair value is lower than amortized cost.15 Huizinga & Laeven (2012) show that US bank holding companies overstated their regulatory capital during the US subprime crisis by underprovisioning for loan…”
Estimating the COVID-19 cash crunch: Global evidence and policy (2020, background): “These prior works primarily use stress tests to investigate the consequences of banks’ sovereign risk exposures (Bischof and Daske, 2013), bank opaqueness (Petrella and Resti, 2013), and banks’ accounting discretion during ﬁnancial crises (Huizinga and Laeven, 2012).”
Crisis-Related Shifts in the Market Valuation of Banking Activities (2012, neutral): “…argue that the decline in market-to-book ratios reflects, at least in part, the purposeful understatement of losses on financial assets in bank holding companies – especially losses related to mortgage activity – which was part of ‘‘an effort to preserve book capital’’ (Huizinga and Laeven, 2012).”
The Effect of Accounting Conservatism on Corporate Investment during the Global Financial Crisis: THE EFFECT OF ACCOUNTING CONSERVATISM (2016, neutral): “A growing literature studies the causes and consequences of the global financial crisis of 2007-2008 (e.g., Campello et al. 2010; Duchin et al. 2010; Ivashina and Scharfstein 2010; Vyas 2011; Huizinga and Laeven 2012).”
Some Borrowers Are More Equal than Others: Bank Funding Shocks and Credit Reallocation* (2019, neutral): “9 Ippolito et al. (2016) and Iyer et al. (2014) use the level of gross interbank funding, whereas Acharya and Mora (2015) uses net interbank funding.”
The Manipulation of Basel Risk-Weights (2014, background): “On the other hand, Huizinga and Laeven (2012) offer insights into the (ab)use of discretionary accounting practices when they show that banks tend to overvalue real estate-related assets such as mortgage-backed securities.”