This paper examines whether a bank’s disclosure level affects the loan loss provision
(LLP) and the stock price’s response to it using commercial banks and bank holding
companies in 41 countries. We find that banks with higher disclosure levels tend to do
less discretionary LLPs after controlling for the banks’ incentives for discretionary
accounting and the level of their home country’s disclosure requirements and private
monitoring. We also find that the stock prices of banks with higher disclosure levels
respond less to LLPs than do those of banks with lower disclosure levels. These results
imply that public disclosure has a commitment effect on bank managers’ LLP accounting
and reduces surprises from LLP announcements.
JEL Classification: G21, G28
Keywords: Bank’s disclosure, Discretionary accounting, Loan loss provision, Stock price
response, Commitment effect
학술 대회
학술대회 목차
[2007년 제 3차] The Effect of Bank’s Disclosure on the Market React
작성자 : 관리자
조회수 : 807
게시일 :
2007-08-24
첨부파일