Loan loss provision decisions: An empirical analysis of the Spanish depository institutions

A review and analysis of international accounting research in JIAAT: 2002–2010

“…The authors believed that the results of the survey would help accounting standard setters understand the concerns of financial statement users in developing countries. Anandarajan, Hasan, and Lozano-Vivas (2005) investigated the efficiency of loan loss decisions of bank managers in Spain and the factors that were related to inefficient decisions. Using a stochastic frontier model, the study determined that inefficiency in loan loss provisions increased after deregulation of the banking industry occurred in Spain.…”

First Financial Restructuring and operating efficiency: Evidence from Taiwanese commercial banks

“…Nonperforming loan and capital adequacy ratio regulations encourage bank managers to adopt better banking and risk management practices and to avoid regulatory costs that are imposed when the bank's ratios do not align with regulatory requirements. Prior research has emphasized the importance of these ratios to accounting and regulatory consequences (e.g., Anandarajan et al, 2005;Moyer, 1990) and documented their relation to efficiency (e.g., Halkos and Salamouris, 2004;Das and Ghosh, 2006).…”

Bank loan loss provision decisions: Empirical analysis of Taiwanese banks

“…Inaccurate and ineffi cient LLP reports mislead not only investor decision making, but also bank regulators ' monitoring policies. This study follows Anandarajan et al 11 and adopts the stochastic frontier model to examine the effi ciency of LLP decision making in the Taiwanese banking industry, and to analyze the determinants of LLP ineffi ciency. The variables adopted in previous studies are utilized as the most relevant for constructing the LLP effi ciency frontier model, and individual banks are labeled as being LLP-ineffi cient if their observed LLP deviates from the LLP frontier.…”

“…9, Lane 17, Yung-Kang Street, Taipei, Taiwan, ROC adequacy ratio requirements. 1 -10 Recently, Anandarajan, Hasan and Lozano-Vivas 11 identifi ed a stochastic frontier model that tests the effi ciency of the LLP decision of Spanish bank managers. The authors have further explored the relationship between effi cient LLP decision making and relevant factors that could potentially explain any ineffi ciency.…”