Regulatory pressure and income smoothing by banks in response to anticipated changes to the Basel Accord

• Main Authors: LIM, Chu Yeong, OW YONG, Keng Kevin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1529
• Institution: Singapore Management University

We examine the effects of the revised Basel II rules on bank managers’ discretionary behavior. Specifically, we ascertain whether bank managers engage in more income smoothing and whether they defer loan loss provisioning as a result of increased regulatory pressure from anticipated changes to the B...