We examine the determinants of the use of loan loss provisions to smooth income by banks in South Africa. More specifically, we examine the influence of ownership, IFRS disclosure rules and economic fluctuation on the income smoothing behaviour of South African banks while controlling for the...

The purpose of this paper is to examine the capital market effects of corporate governance (CG) practices of “comply or explain” on stock market liquidity in a frontier market. Using secondary data from Nairobi Securities Exchange (NSE) liquidity position is analyzed using panel data random...

The study investigates the influence of financial development on non-performing loans using a global sample. The findings indicate that two financial development proxies, foreign bank presence and financial intermediation, are positively associated with non-performing loans. Among the...

Financial institutions operating in a stable financial system seem to be willing to support the realization of the sustainable development goals (SDGs). This view assumes that financial stability is crucial for sustainable development. We investigate the effect of financial stability on...

Banking sector is at a risk of worsening loan quality which is a major threat to the stability of financial system. The impact of foreign direct investment (FDI) inflows on nonperforming loans (NPLs) in United Arab Emirates (UAE) is empirically investigated in this study. The data from 2008 to...

This paper empirically examine whether the way African banks use loan loss provisions to smooth earnings is influenced by capital market motivations and the type of auditor after controlling for non-discretionary determinants of loan loss provisions and fluctuations in the business cycle. The...

This article investigates the relationship between discretionary loan loss provisions and bank intangibles among African banks. Prior studies examine how intangible assets affect firms' profitability and valuation decisions with almost no focus on the role of loan loss provisions. We investigate...

This study investigates the non-discretionary determinants of bank loan loss provisions in Africa after controlling for macroeconomic fluctuation, financial development and investor protection. We find that non-performing loans, loan-to-asset ratio and loan growth are significant...

We investigate whether banks use commission and fee income to manage reported earnings as an income-increasing or income smoothing strategy. We find that banks use commission and fee income for income smoothing purposes and this behaviour persist during recessionary periods and in environments...

This study investigates bank income smoothing, focusing on the effect of corruption on the extent of income smoothing by African banks. I find that banks use loan loss provisions to smooth positive (non-negative) earnings particularly in the post-2008 crisis period and this behaviour is reduced...