The politics of bank opacity

• Main Authors: Heng YUE, ZHANG, Liandong, ZHONG, Qinlin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Bank opacity; politicians; loan loss provisions; regulatory forbearance; real effects; market discipline; Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/1898; https://ink.library.smu.edu.sg/context/soa_research/article/2925/viewcontent/The_Politics_of_Bank_Opacity_JAE_final.pdf
• Institution: Singapore Management University

The distribution of power in the political system shapes the financial reporting opacity of banks. Specifically, banks located in states with senators on the Senate Banking Committee (BC senators) have greater abnormal loan loss provisions than banks in other states. The result is stronger for large...