The Effect of Corporate Taxation on Bank Transparency: Evidence from Loan Loss Provisions

Bank Loan Loss Provisions Research: A Review

“…Regarding sample period, some studies use pre-crisis data (Anandarajan et al, 2007;Leventis et al, 2011;Bushman & Williams, 2012;Jin et al, 2016), while many studies' sample period span through the pre-crisis, duringcrisis and post-crisis period to enable comparison before, during and after the global financial crisis (Cummings and Durrani, 2016;Soedarmono et al, 2017;Andries et al, 2017;Ozili, 2017a,b;Andries et al, 2017) while very few LLP studies examine a longer time period in post-crisis years and such studies, if present, can capture new regulatory changes affecting provisions in the post-crisis period to date. Therefore, there is need for more post-crisis studies keeping in mind that post-crisis sample period might be too narrow.…”

“…Since Wall and Koch (2000), emerging studies have examined several issues in the loan loss provisioning literature including: provisioning behaviour during fluctuating business cycles and crisis periods (Laeven & Majnoni, 2003;El Sood, 2012;Agenor and Zilberman, 2015), how procylical LLPs contribute to systemic risk and financial system instability (Borio, Furfine, & Lowe, 2001, pp. 1e57;Wong, Fong, & Choi, 2011), dynamic provisioning to mitigate LLP procyclicality (Saurina, 2009;Perez et al, 2011), the role of LLP in bank earnings management, regulatory capital management, signalling and tax management (Lobo & Yang, 2001;Kanagaretnam, Lobo, & Yang, 2005;Anandarajan, Hasan, & McCarthy, 2007;Perez, SalasFumas, & Saurina, 2008;Ozili, 2015Ozili, , 2017aAndries, Gallemore, & Jacob, 2017), bank manager's provisioning discretion under different accounting and regulatory regimes (Alali and Jaggi, 2011;Hamadi, Heinen, Linder, & Porumb, 2016;Kilic, Lobo, Ranasinghe, & Sivaramakrishnan, 2012;Leventis, Dimitropoulos, & Anandarajan, 2011;Marton & Runesson, 2017;Ryan & Keeley, 2013;Wezel, Lau, & Columba, 2012), provisioning and competition (Dou, Ryan, & Zou, 2016), provisioning under different auditor type, reputation and specialism (Dahl, 2013;Kanagaretnam, Lim, & Lobo, 2010;Ozili, 2017a), provisioning discretion under strong corporate governance mechanism and institutional controls (Fonseca and Gonzalez, 2008;Bouvatier, Lepetit, & Strobel, 2014;Curcio & Hasan, 2015) and provisioning behaviour in several country, regional and international contexts (Pain, 2003;…”

Registro Digital De Cheias Para a Sustentabilidade Da Política Económica

“…Insurers depend on loss reserves. Due to loss forecasts, some insurance companies often turn to banks (ANDRIES et al, 2017). The need for fi nancial banking support is overcome when insurers carry out the control, with an annual fi nancial report containing the estimated economic reserves, including the tax component, and the forecast of losses (CHENG et al, 2019;GUENTHER et al, 1997).…”