This study investigates the association between a bank's nonperforming loans and its ESG (environmental, social, governance) performance. Using data from U.S. commercial banks, we find that rating is negatively associated with loans. Furthermore, document high performance in all three pillars of evaluation reduces ratio Our finds favorable improves loan quality provides archival evidence importance ESG.

International Financial Reporting Standards (IFRS) have recently been adopted in a number of jurisdictions, including the European Union. Despite importance IFRS context global accounting standards harmonization, little is known regarding what institutional factors influence countries' decisions to voluntarily adopt IFRS. This issue relevant standard-setters because better understanding motivations for adoption will enable them promote more effectively countries that currently do not employ...

Purpose This study aims to examine declines in audit quality after the COVID-19 travel restrictions/stay-at-home orders were issued USA early 2020. Design/methodology/approach Taking advantage of variation dates stay-at-home by different US states, this identifies engagements that significantly affected lock down orders. Findings The results suggest restrictions produced lower quality, as measured through restatements and discretionary accruals, relative those completed before Further...

This study examines the impact of Big 4 auditor choice on sale proceeds controlling interests in U.S. private firms.1 Prior research, such as Becker, DeFond, Jiambalvo, and Subramanyam 1998 Francis, Maydew, Sparks 1999, suggests that auditors provide higher audit quality than non–Big for public companies. Further, reduce cost equity capital (Khurana Raman 2004), debt (Mansi, Maxwell, Miller 2004; Pittman Fortin increase initial offering (IPO) (Willenborg 1999) research has not examined...

International Financial Reporting Standards (IFRS) have recently been adopted in a number of jurisdictions, including the European Union. Despite importance IFRS context global accounting standards harmonization, little is known regarding what institutional factors influence countries' decisions to voluntarily adopt IFRS. This issue relevant standard setters because better understanding motivations for adoption will enable them promote more effectively countries that currently do not employ...

Abstract We study whether banks use the allowance for loan losses ( ALL ) efficiency or opportunistic reasons. find that had higher abnormal during period prior to 2007–2009 crisis engaged in less risk taking pre‐crisis and a lower probability of failure period. In testing earnings management meet beat benchmarks, we is unrelated next period's loss avoidance just meeting beating year's earnings. Our results suggest not purposes.

This paper aims to examine the role of corporate governance (CG) on earnings management (EM) in Indian commercial banks. In addition, study examines board gender diversity within CG framework using data from 22 publicly traded banks India 2010 2019. The uses Principal Component Analysis (PCA) develop a comprehensive measure. Using Panel Corrected Standard Error (PCSE) approach, finds that has significant negative impact EM findings further revealed positive association between boards and EM,...

Cyber threats to banks can indicate high operational risks and a weak internal control system. Our paper is the first study impact of banks' discretionary loan loss provisions on cyber attacks. We investigate whether provision predict attack conduct less or more earnings management following attack. find that are positively associated with future also will engage in such incidents. establish close link between

Purpose This paper empirically investigates whether trade openness (TO) in Brazil, Russia, India, China and South Africa (BRICS) countries affects how banks might employ loan loss provisions (LLPs) to smooth out their earnings adopting the International Financial Reporting Standards (IFRS) can mitigate it. Design/methodology/approach The analysis includes 78 commercial from five BRICS nations spans 2014 through 2020. To test these hypotheses, authors utilized a fixed-effect two-step system...

Abstract Despite the importance of sell‐side financial analysts as information intermediaries in capital market, little is known about how managerial equity ownership associated with their environment. Using Barron, Kim, Lim and Stevens’ (1998) framework for measuring precision analysts’ information, we observe that positively public (common) private (idiosyncratic) largely consistent alignment view ownership. These results are robust to controlling various economic statistical factors might...

In this study, we examine the relationship between financial literacy and bank reporting transparency for a sample of banks from U.S. Following prior literature, employ discretionary loan loss provisions (DLLP) as our primary measure transparency. We argue that their customers can influence managers' behaviors with respect to both mechanics provisioning opportunistic actions. Financially literate represent more stable sources funding have predictable contributes persistent earnings....

Despite a significant amount of academic interest in politicians, there is little empirical research on the impact their absence air quality areas under jurisdiction. This study therefore examines city leaders' local quality. Using hand-collected data Chinese cities from 2003 to 2018, we find that leader's reduces pollutant emissions and improves We also identify two potential channels through which this happens: disrupted collusion between leaders enterprises; reduced investment. Finally,...

We examine the ability of selected accounting and audit quality variables measured in a period prior to financial crisis (i.e., four quarters 2006), predict banks that subsequently failed during crisis. These predictor include balance sheet strength, loan characteristics, reporting discretion, auditor type industry specialization. employ two sets samples from US: troubled sample includes or after 2007 as well classified being based on profitability, quality, position 2007, full all with...

This study documents a substantial impact of Big 4 auditor choice on the sale proceeds controlling interests U.S. private firms. A representative stock-purchase company with median enterprise value ranging from $14 to $18 million experiences dollar decrease in due not hiring $2.0 $5.2 million. We obtain similar magnitude "deal reduction" for sales structured as asset purchases. Our results provide partial explanation discount (PCD), one related information quality facing buyer rather than...