https://scholars.lib.ntu.edu.tw/handle/123456789/100292
Title: | 1990年代美國銀行業壞帳沖銷動機及市場解讀 | Other Titles: | Income Smoothing over the Business Cycle: Changes in Banks’ Coordinated Management of Provisions for Loan Losses and Loan Charge-offs from the Pre-1990 Bust to the 1990s Boom | Authors: | 劉啟群 | Keywords: | Income smoothing;business cycle;banks;provisions for loan losses;loan charge-offs | Issue Date: | 2003 | Publisher: | 臺北市:國立臺灣大學會計學系暨研究所 | Abstract: | We provide evidence that banks smooth income by managing provisions for loan losses and loan charge-offs in a coordinated fashion that varies across the bust and boom phases of the business cycle and across homogeneous and heterogeneous loan types. In particular, during the 1990s boom, we predict and find that banks accelerated provisioning for loan losses and made this less obvious by accelerating loan charge-offs, especially for homogenous loans for which charge-offs are determined using number-of-days-past-due rules. We also provide evidence that the valuation implications of banks’ provisions for loan losses and loan charge-offs vary across the phases of the business cycle and loan types reflecting the effect of these factors on banks’ income smoothing. In particular, during the 1990s boom, we predict and find that charge-offs of homogenous loans have a positive association with current returns and future cash flows, because these charge-offs are recorded primarily by healthy banks with good future prospects reducing over-stated allowances for loan losses. We also predict and find that these charge-offs have a positive association with future returns that is explained by their positive association with future net income and recoveries. Our results are consistent with the market only partially appreciating healthy banks’ overstatement of charge-offs of homogeneous loans based on number-of-days-past-due rules during the 1990s boom, because of the perceived non-discretionary nature of these charge-offs. |
URI: | http://ntur.lib.ntu.edu.tw//handle/246246/18415 | Other Identifiers: | 912416H002028 | Rights: | 國立臺灣大學會計學系暨研究所 |
Appears in Collections: | 會計學系 |
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912416H002028.pdf | 186 kB | Adobe PDF | View/Open |
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