The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks

Detalhes bibliográficos
Autor(a) principal: Proença, Catarina
Data de Publicação: 2023
Outros Autores: Augusto, Mário, Murteira, José
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10316/103320
https://doi.org/10.1016/j.frl.2022.103450
Resumo: This study investigates the impact of earnings management on the efficiency of Eurozone banks, examining its chronological evolution until the implementation of International Financial Reporting Standard 9. Using data on 70 banks, we find that earnings management, defined as discretionary loan loss provisions, negatively affects efficiency. Meanwhile, when we also include non-discretionary provisions (those required by legal obligations), we estimate a positive impact of loan provisions on allocative efficiency—contrarily to a negative effect of discretionary provisions. This finding helps stress the importance of adequately defining earnings management, namely for the purpose of analyzing its effect on banking efficiency.
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spelling The effect of earnings management on bank efficiency: Evidence from ECB-supervised banksThis study investigates the impact of earnings management on the efficiency of Eurozone banks, examining its chronological evolution until the implementation of International Financial Reporting Standard 9. Using data on 70 banks, we find that earnings management, defined as discretionary loan loss provisions, negatively affects efficiency. Meanwhile, when we also include non-discretionary provisions (those required by legal obligations), we estimate a positive impact of loan provisions on allocative efficiency—contrarily to a negative effect of discretionary provisions. This finding helps stress the importance of adequately defining earnings management, namely for the purpose of analyzing its effect on banking efficiency.2023-01info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttp://hdl.handle.net/10316/103320http://hdl.handle.net/10316/103320https://doi.org/10.1016/j.frl.2022.103450eng15446123https://www.sciencedirect.com/science/article/pii/S1544612322006274?via%3DihubProença, CatarinaAugusto, MárioMurteira, Joséinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2022-12-06T11:08:30Zoai:estudogeral.uc.pt:10316/103320Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T21:20:10.631552Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
title The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
spellingShingle The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
Proença, Catarina
title_short The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
title_full The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
title_fullStr The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
title_full_unstemmed The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
title_sort The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
author Proença, Catarina
author_facet Proença, Catarina
Augusto, Mário
Murteira, José
author_role author
author2 Augusto, Mário
Murteira, José
author2_role author
author
dc.contributor.author.fl_str_mv Proença, Catarina
Augusto, Mário
Murteira, José
description This study investigates the impact of earnings management on the efficiency of Eurozone banks, examining its chronological evolution until the implementation of International Financial Reporting Standard 9. Using data on 70 banks, we find that earnings management, defined as discretionary loan loss provisions, negatively affects efficiency. Meanwhile, when we also include non-discretionary provisions (those required by legal obligations), we estimate a positive impact of loan provisions on allocative efficiency—contrarily to a negative effect of discretionary provisions. This finding helps stress the importance of adequately defining earnings management, namely for the purpose of analyzing its effect on banking efficiency.
publishDate 2023
dc.date.none.fl_str_mv 2023-01
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10316/103320
http://hdl.handle.net/10316/103320
https://doi.org/10.1016/j.frl.2022.103450
url http://hdl.handle.net/10316/103320
https://doi.org/10.1016/j.frl.2022.103450
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 15446123
https://www.sciencedirect.com/science/article/pii/S1544612322006274?via%3Dihub
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dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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