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...

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,...

We investigate the role of loan loss provisions (LLPs) for bank earnings management and risk provisioning. First, banks use LLPs to reduce the volatility of their earnings and banks with less volatile regulatory capital requirements have also less volatile earnings. Second, LLPs are higher when...

Despite the growing importance of institutional investors in global capital markets and the link between bank earnings management and financial crash risk, little is known about institutional investors' role in mitigating bank earnings management. We conduct the first international analysis of...

We examine the relation between legal, extra-legal and political institutional factors and earnings quality of banks across countries. We predict that earnings quality is higher in countries with legal, extra-legal and political systems that reduce the consumption of private control benefits by...

We study the effects of country-level accounting enforcement on earnings quality of banks and whether bank regulation substitutes or complements the effect of accounting enforcement on bank earnings quality. We also examine whether the influence of accounting enforcement on bank earnings quality...

This paper analyzes whether differences in bank earnings management across countries can be linked to differences in the prevailing institutional and regulatory framework. Using a broad sample of 21,895 banks from 47 countries over the period 1990 to 2006, we consider three dimensions along...

Business Combination in form of acquisition brings a lot of enthusiasm on the shareholders and the economy. These are however complex transactions governed by statutory provisions, regulator’s guidelines and professional input. This study explored business combination in the Malawian Banking...

Malawian banking industry has undergone seismic transformation over the past twenty years. It has been two decades of plethora of new entrants followed by acquisitions propelled by minimum paid capital requirements which have forced smaller banks to be absorbed by bigger banks. The barriers of...

Business combination in the banking sector plays a significant role in any given economy as proponents purport that it is a catalyst for attaining economies of scale to realise competitive advantage through cost and quality differential. Opponents postulate that big banks abuse their position...