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

• المؤلفون الرئيسيون: RANASINGHE, Tharindra, Kilic, E., Lobo, G., Sivaramakrishnan, K.
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2012
• الموضوعات: SFAS 133; Income smoothing; Hedging; Derivatives; Loan loss provisions; Accounting; Corporate Finance
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/soa_research/880; http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2113381

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...