Market response to banks granting lines of credit
Article Abstract:
Awareness in the volume of credit lines granted in financial markets has been proven to generate a considerable impact on the borrower's stock. Results gathered from an analysis involving all sets of line credits made during between the 1993-1996 period suggest that these activities tend to send positive signals to the market pertaining to the true nature of the banks current and potential characteristics. These results further imply that line of credits may result in a positive departure from competitive equilibrium in the market.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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Investor protection, prospect theory, and earnings management: an international comparison of the banking industry
Article Abstract:
A study on earnings management of banks from 48 countries is presented. The study analyses whether earnings management exists in all these countries and the incentives for banks to manage these earnings. The variance in earnings management is also analyzed. The study also shows that higher levels of investor protection regulations reduce incentives for banks to manage earnings, because risk is lower. Higher real GDP per capital is also inversely proportionate to the degree of earnings management.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 2005
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