Income Smoothing Practices: Evidence from Banks Operating in OECD Countries

Autor:	Pascal Dumontier, Ridha Shabou, Neila Boulila Taktak
Rok vydání:	2010
Předmět:	Finance Real income Earnings business.industry Creditor media_common.quotation_subject Sample (statistics) Monetary economics Discretion Loan Accounting information system Economics business Capitalization media_common
Zdroj:	International Journal of Economics and Finance. 2
ISSN:	1916-9728 1916-971X
DOI:	10.5539/ijef.v2n4p140
Popis:	Using a sample of 278 commercial banks operating in OECD countries, this paper shows that numerous banks smooth their earnings intentionally either by using loan loss provisions or by selling trading securities. These banks resort more to real income smoothing than to the artificial one. Results also indicate that the banks’ propensity to smooth reported earnings depends on their exposure to prudential and curative constraints and on various institutional constraints. The degree of capitalization, the composition of regulatory equity capital and the presence of insured creditors motivate banks to smooth their results. This study also highlights that Anglo-Saxon accounting systems seem to favour smoothing behaviour probably because they provide discretion in reporting transactions.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::2c02074e34d542f71419147a7fd18c1b https://doi.org/10.5539/ijef.v2n4p140 Zobrazit plný text záznamu