We empirically investigate whether the presence of trade openness in a bank-domiciled country affects how banks might employ loan loss provisions to smooth out their earnings, and how adopting IFRS can mitigate it. Using fixed-effect and two-step system panel GMM estimators, we find that trade...

The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991 was designed, among other things, to introduce risk-based deposit insurance, increase capital requirements, and improve banks’ internal controls. Of particular interest in this study are the requirements for annual...

We examine the unintended consequences of the 2005 increase from $500 million to $1 billion in the asset threshold for the Federal Deposit Insurance Corporation Improvement Act (FDICIA) internal control reporting requirements. We focus on a test sample of banks that increased their total assets...