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...

This article belongs to the current in research literature, which is concerned with value relevance. Its main aim is to test the impact of the current and future accounting variables on the firm's market value, by analyzing these relations with reference to the financial sector of the Italian...

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...

Analyzing public and private US commercial banks, we document a discontinuity around the 10% regulatory capital ratio. This threshold separates well capitalized from adequately capitalized banks, granting benefits to banks that fall into the former category. We find that the significance and...

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...

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...

This study examines the relationship between accounting credibility and firms' ability to fund their investments. Theory suggests that credible reporting resulting from external audits enables firms to attract external funds needed for their investments. The tests exploit monetary policy...

Our study examines the determinants and consequences of reverse factoring. Despite the increasing popularity of reverse factoring, neither US GAAP nor IFRS offers any guidance for the financial reporting of obligations owed under reverse factoring. Using a sample of UK firms from 2018 to 2020,...

I find that managers manage earnings upward in the quarters preceding a debt-covenant violation, but downward in the quarter a violation occurs. And they continue to manage earnings downward while the firm remains in violation. Because this scenario can play out within a year, the use of yearly...

Earnings play a vital role in portraying a company's economic health. Hence, executives have incentives to manage earnings. Motivated by Degeorge et al. (1999) and Burgstahler and Dichev (1997), this study applies the behavioral framework developed by Degeorge et al. (1999) to investigate...