The impact of regulations on compliance costs,risk-taking,and reporting quality of the EU banks |
| |
| Institution: | 1. School of Economics, Finance and Accounting, Faculty of Business and Law, Coventry University, Coventry, England CV1 5FB, United Kingdom;2. Centre for Research in Finance, Cranfield University, Cranfield, School of Management, England MK43 0AL, United Kingdom;1. Deutsche Bundesbank, Research Centre, Frankfurt, Germany;2. Deutsche Bundesbank, DG Financial Stability, Frankfurt, Germany;1. Department of Economics, University of North Texas, 1155 Union Circle Box 311457, Denton, TX 76203, USA;2. Wenlan School of Business, Zhongnan University of Economics and Law, Wuhan, Hubei 430073, China |
| |
| Abstract: | The paper examines how the Statutory Audit and Corporate Reporting Directives (SACORD) affect the compliance costs, risk taking and quality of financial reporting of the EU banks. Using a natural experiment, we find that post SACORD, both compliance costs and risk taking increase significantly. However, the implementation of additional regulations seems to be effective in terms of improved quality of financial reporting. When we analyse the impact by size, we find that smaller banks face disproportionately higher increase in compliance costs while larger banks seem to engage in greater risk taking. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
