We investigate the relationship between the transparency of loan loss provision disclosures and the provisioning … mandatory disclosures of loan loss provisions. Using proprietary data provided by the national supervisor, we are able to … observe provisioning practices before and after disclosure becomes mandatory. Our findings suggest that bank managers use loan …

informativeness of loan loss provisions for future loan defaults and bank stock returns … more affected by SFAS 133 rely more on loan loss provisions to smooth income. We find evidence consistent with this … argument. We also find that the increased reliance on loan loss provisions for smoothing income has impaired the …

Africa (BRICS) countries affects how banks might employ loan loss provisions (LLPs) to smooth out their earnings and how … earnings' quality. Practical implications The relationship between TO and bank earnings management practices is important for … decisions with improved discipline, institutional quality and regulatory support to enhance bank stability. Originality …

In this study, we provide evidence of the effects of macroprudential policy tightening on loan loss provisions (LLP … of a new tool versus a recalibration of existing tools) and on market significance of a bank …

Academic research on loan loss provisioning and the earlier incurred credit losses (ICL) model has a long tradition in … extend the research field with an empirical contribution to the recognition of Loan Loss Provisions (LLPs) based on the … Expected Credit Loss model (ECL). By using a Difference-in-Differences research design, this paper aims to investigate the …

The Current Expected Credit Loss (CECL) standard took effect in 2020 during the onset of the unprecedented global …’ loan loss provisions and on earnings quality. We empirically document that starting in the second half of 2020, banks … adopting CECL report larger reserve releases and are more likely to report negative loan loss provisions than non …

predictability of loan loss provisions (LLP) and potential consequences on market discipline. Specifically, I first investigate … whether the association between recognized loan loss provisions and objective determinants of the incurred loss model (i …-taking incentives. The empirical findings suggest a decrease in the association between loan loss provisions and the determinants of the …

Several studies have addressed, with conflicting results, the issue of procyclical effects of loan loss provisions in … the past. More recently, the weak performance of incurred loss models in the financial crisis has given rise to a new … expected loss model in IFRS 9. This study contributes to the extant literature by separately analyzing the cyclical effects of …

We study whether bank managers' use their discretion in estimating the allowance for loan losses (ALL) for efficiency … or for opportunistic reasons. We do so by examining whether the use of this discretion relates to bank stability and bank … beat earnings benchmarks, we find that abnormal ALL is unrelated to next period's loss avoidance and just meeting or …

We review the recent academic and policy literature on bank loan loss provisioning (LLP) to identify several advances … smoothing, methodological issues in the bank loan loss provisions literature and the dynamic loan loss provisioning experiment …