Beck, Paul J.; Narayanamoorthy, Ganapathi S. - In: Journal of Accounting and Economics 56 (2013) 2, pp. 42-65
During the late 1990s, the SEC alleged that banks were overstating loan loss allowances to establish cookie jar reserves. Their intervention in bank accounting culminated in 2001 with new guidance (SAB 102) designed to improve financial reporting quality. We show that banks' allowance estimation...
