The Impact of SFAS 133 on Income Smoothing by Banks through Loan Loss Provisions

• Main Authors: RANASINGHE, Tharindra, Kilic, E., Lobo, G., Sivaramakrishnan, K.
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2012
• 主題: SFAS 133; Income smoothing; Hedging; Derivatives; Loan loss provisions; Accounting; Corporate Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/880; http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2113381
• 機構: Singapore Management University

We examine the impact of SFAS 133, Accounting for Derivative Instruments and Hedging Activities, on the reporting behavior of commercial banks and the informativeness of their financial statements. We argue that, because mandatory recognition of hedge ineffectiveness under SFAS 133 reduced banks’ ab...