Loan-loss provisions of commercial banks and adequate disclosure: A note

Income smoothing behavior of U.S. banks under revised international capital requirements

“…Kim and Santomero [1993] provide a model which results in producing income smoothing as a natural product of the bank's attempt to maintain reserves against losses. By contrast, Scheiner [1991] and Wetmore and Brick [1994] fail to find evidence supporting the practice of income smoothing among banks.…”

Loan Loss Provisioning, Income Smoothing, Signaling, Capital Management and Procyclicality: Does IFRS Matter? Empirical Evidence from Nigeria.

“…They report that EU firms within markets with high protection of creditor right do not smooth income. On the other hand, some studies show conflicting evidence (for example, Wetmore and Brick, 1994;Ahmed et al, 1999). Ahmed et al (1999) found no evidence to support the income smoothing hypothesis after the implementation of Basel 1.…”

Earnings versus capital ratios management: role of bank types and SFAS 114

“…Ahmed et al 1999;Wetmore and Brick 1994;Collins et al 1995). Despite inconclusive evidence, there is a general belief in the market that bank managers use LLP extensively to manipulate reported earnings.…”