Please use this identifier to cite or link to this item: https://hdl.handle.net/10316/103320
Title: The effect of earnings management on bank efficiency: Evidence from ECB-supervised banks
Authors: Proença, Catarina 
Augusto, Mário 
Murteira, José 
Issue Date: Jan-2023
Project: UIDB/05037/2020 
Serial title, monograph or event: Finance Research Letters
Volume: 51
Abstract: This study investigates the impact of earnings management on the efficiency of Eurozone banks, examining its chronological evolution until the implementation of International Financial Reporting Standard 9. Using data on 70 banks, we find that earnings management, defined as discretionary loan loss provisions, negatively affects efficiency. Meanwhile, when we also include non-discretionary provisions (those required by legal obligations), we estimate a positive impact of loan provisions on allocative efficiency—contrarily to a negative effect of discretionary provisions. This finding helps stress the importance of adequately defining earnings management, namely for the purpose of analyzing its effect on banking efficiency.
URI: https://hdl.handle.net/10316/103320
ISSN: 15446123
DOI: 10.1016/j.frl.2022.103450
Rights: openAccess
Appears in Collections:FEUC- Artigos em Revistas Internacionais

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