The impact of banking regulations and accounting standards on estimating discretionary loan loss provisions

被引：11

作者：

Pandey, Ashish ^{[1
,4
]}

Tripathi, Abhinava ^{[2
,5
]}

Guhathakurta, Kousik ^{[3
,6
]}

机构：

[1] Indian Inst Management, Lucknow, Uttar Pradesh, India

[2] Indian Inst Technol, Roorkee, Uttar Pradesh, India

[3] Indian Inst Management, Indore, India

[4] IIM, Finance & Accounting Area, Lucknow, Uttar Pradesh, India

[5] IIT, Management Studies Area, Roorkee, Uttar Pradesh, India

[6] IIM, Finance & Accounting Area, Indore, India

来源：

FINANCE RESEARCH LETTERS | 2022年 / 44卷

关键词：

Loan loss provision; Discretionary provision; Nonperforming asset; Accruals; Managerial behaviour; Incurred-loss approach; MARKETS;

D O I：

10.1016/j.frl.2021.102068

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Loan loss provisions (LLP) are relatively large accruals for commercial banks. The discretionary nature of LLP makes them particularly useful in examining the impact of regulations on managerial behaviour. The accounting standards in emerging countries are often rule-based instead of the principle-based approach adopted in developed countries. We propose and compare a new specification incorporating the rule-based approach with nine widely employed LLP specifications used in the literature. We show empirically, employing a range of model selection criteria, that our proposed specification is more suitable for understanding the information content of LLP in emerging countries. In this study, all the specifications are compared and examined using data from India, a large and important emerging economy.

引用

页数：10