Bank Accounting Conservatism and Bank Lending Behaviour

• Main Authors: LIM, Chu Yeong, Walker, Martin, LEE, Edward, Kausar, Asad
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/906
• Institution: Singapore Management University

Literature documents a negative relation between borrower accounting conservatism and debt pricing but the relation between bank accounting conservatism and bank lending behaviour is an area that has been little studied. We provide evidence that banks which recognize losses on a timely basis charge...