COHEN, LEE J.; CORNETT, MARCIA MILLON; MARCUS, ALAN J.; … - In: Journal of Money, Credit and Banking 46 (2014) 1, pp. 171-197
We show that a pattern of earnings management in bank financial statements has little bearing on downside risk during quiet periods, but seems to have a big impact during a financial crisis. Banks demonstrating more aggressive earnings management prior to 2007 exhibit substantially higher stock...