This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks'' balance … crisis. Share prices of banks with large exposure to mortgage-backed securities also react favorably to recent changes in … accounting rules that relax fair-value accounting, and these banks provision less for bad loans. Furthermore, distressed banks …

This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance … crisis. Share prices of banks with large exposure to mortgage-backed securities also react favorably to recent changes in … accounting rules that relax fair-value accounting, and these banks provision less for bad loans. Furthermore, distressed banks …

This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance … crisis. Share prices of banks with large exposure to mortgage-backed securities also react favorably to recent changes in … accounting rules that relax fair-value accounting, and these banks provision less for bad loans. Furthermore, distressed banks …

on the internal ratings of U.S. banks on loans to businesses over the period 1997 to 2011 from the Federal Reserve …’s survey of terms of business lending. We find that ex-ante risk taking by banks (as measured by the risk rating of the bank’s … pronounced for banks with relatively low capital or during periods when banks’ capital erodes, such as episodes of financial and …

provisions tend to be more procyclical at larger and better capitalized banks. The procyclicality of loan loss provisions can …

Do media slant news in favor of the banks they borrow from? We study how lending connections affect news coverage of … banks earnings reports and of the Eurozone sovereign debt crisis on major newspapers from several European countries. We … find that newspapers cover announcements by their lenders - relative to those of other banks - significantly more when they …