The main function behind the conceptualization of creative accounting is maintaining the quality of financial reporting practice. This phenomenon has attracted the attention of researchers for decades, especially in the banking sector, concerning its wide implications and indications for...

Using a sample of almost 300 European banks, we show that the concentration of ownership leads to larger capital buffers, consistent with theories of interest alignment and the charter value theory. Contradictory findings of previous literature suggest that external factors may affect the...