This paper examines the effect of managers' liability exposure on earnings conservatism in the banking industry. Focusing on a wide international sample of commercial banks and using TIER1 as a proxy of bank managers' exposure to litigation, our results show a negative relationship between the...

The authors analyze commercial banks' profitability (return on equity, ROE) at different levels of creditor rights and an aggregate score of information sharing in terms of credit bureaus. After controlling for bank size and some macroeconomic variables, the results indicate that profitability...

This study contrasts the reliability of Abnormal ROE (residual income scaled by beginning-of-period book value of equity) estimates based on value drivers with a contextual approach in the commercial bank industry of the OECD countries. We identify the key theoretical variables from the banking...

This paper contributes to the literature by indicating how the effect of monetary policies, such as interest rates, the zero lower bound (ZLB) and differential volatility between long-term and short-term interest rates, impact the incentives of firms' managers in the US in recent years and how...

Coordination problems amongst creditors are reduced when a firm's debt structure is concentrated in fewer debt types. Using a sample of US non-financial firms, we show that an increase in risk-taking incentives in CEO pay is associated with a greater debt concentration by debt type. This result...

This paper analyzes the effect of a firm's life cycle stages on capital structure in tech versus non-tech firms using a wide sample of public companies from Europe. An innovative approach based on operating, investing, and financing cash flows allows us to analyze differences in leverage and...

Using a contextual approach on a sample of commercial banks from the OECD countries, this study identifies some drivers of abnormal ROE (residual income scaled by beginning-of-period book value of equity). We select the key theoretical variables from the banking and the accounting literature and...

This discussion places the Giner and Pardo's (2011) study in the line of research that develops similar experiments; it helps to fundament and reason the evidence obtained; it supports the model selection, proposing a complementary itinerary of references for the deduction or specification of the...

This study analyzes how environmental transaction costs affect the speed of adjustment to the target financial debt. By applying GMM and panel data on European listed firms over the period 2005–2015, we find that the speed of adjustment is slower for carbon emitters. These results suggest that...