earnings mainly via below-the-line items to avoid losses and promote survival, rather than to support refinancing goals. Such …. Furthermore, we find the market to be relatively insensitive to such admissions. Investors’ reactions capture only the earnings … reporting. However, the equity market does not completely ignore the earnings information. Investors’ reliance on earnings is …

. We expect incoming CEOs to take an earnings bath during the initial stage of their tenure. For a sample of German banks … accounting, during their first (partial) year in charge, (2) incoming CEOs from outside the bank take a larger earnings bath than … insiders, and (3) incoming CEOs take a smaller earnings bath when the incumbent CEOs retire than when they leave for other …