This paper examines the asset pricing implication of loan loss provisions (LLP). LLP is a bank's dominant accrual and a key determinant of informativeness of banks' financial reports. We find banks with low LLP have significantly higher returns than banks with high-LLP. A long-short investment...

We provide evidence that discretionary loan loss provisions (DLLP) convey value-relevant information to the market that is highly dependent upon the state of the economy. DLLP is associated with negative abnormal returns during bad economic states characterized by growing default concerns, but...

The purpose of the paper is to examine the impact of derivatives usage on bank performance. Four derivatives are used: forward, futures, options, and swaps. The bank performance is measured by daily stock returns during the period 2003-2009. The sample is composed of 74 banks from both emerging...

Since the financial crisis, the markets for Bank Loan (BL) and High Yield Bond (HYB) mutual funds (MFs) have grown significantly, with assets under management increasing from $19 billion and $75 billion to close to $117 billion and $225 billion, respectively, as of December 2018. This short...