We provide evidence suggesting that managers use financial statement misstatements which improve reported results to facilitate acquisitions. Specifically, we find that firms misstating their financial statements are more likely to make stock-based acquisitions, but not cash-based acquisitions,...

This paper examines the relation between the investment horizon of banks and their CEO compensation, and its consequences for risk and performance. We find that banks with short-term investment intensity pay more cash bonus, exhibit higher risk and perform more poorly than banks with longer-term...

Fraud is a fundamental problem with every financial institution in the world, and Saudi Arabian banking sector is not immune to this malaise. Advances in technology that have led to the development of electronic banking have created new challenges for preventing fraud in the banking sector. This...

We examine the relationship between equity incentives and earnings management in the banking industry. By focusing on this regulated industry and using industry-specific earnings management proxies, we provide evidence on the impact of regulation on earnings management arising from CEOs' equity...

This paper examines the role of certain fair value accounting (FVA) outcomes in compensation of US bank CEOs. The use of FVA in compensation invites an agency cost - the clawback problem - if cash compensation is based on unrealized profits that may reverse in the future. At the same time FVA...

This study aims at ascertaining how corporate social responsibility (CSR) relates with financial performance of quoted deposit money banks in Nigeria from 2010-2016. Specifically, this study aims to ascertain the extent of relationship that exists between donation and return on assets; determine...

This paper studies the effect of audit market competition on the clients' cost of bank loans. Exploiting the demise of Arthur Andersen, which differently reduced the local audit market competition of metropolitan statistical areas (MSAs), we find that auditor competition increases the cost of...

Dem Eigenkapital von Unternehmen kommt eine herausragende Bedeutung zu, weil es denUnternehmen Verfügungsmacht über Haftungspotentiale verschafft. Insbesondere gilt dies fürBanken, da sie eine zentrale Stellung in den Zahlungs- und Haftungsbeziehungen einerVolkswirtschaft einnehmen und die...

The German Commercial Code (HGB) allows banks to build visible reserves for general banking risks according to section 340g HGB. These GBR reserves may, in addition to their risk provisioning function, be used to enhance capital endowment, for internal financing, signaling or earnings management...

Section 340f of the German Commercial Code allows banks to provision against the special risks inherent to the banking business by building hidden reserves. Beyond risk provisioning, these reserves are implicitly accepted as an earnings management device. By analyzing financial statements of...