This paper examines the effect of a regulation change on management incentives and accrual estimates. We investigate whether managers of banks with low capital ratios reduce their banks' loan loss provisions after the 1989 change in capital standards. The loan loss provision increases the...

We compare return and volume responses to earnings announcements in the early 1960s with the early 1990s. Our results show that both the absolute return and abnormal volume over day-1 and 0 is larger for 1990s announcements. Jointly, these results are consistent with the proposition that 1990s...