The Relationship Between Bank Risk and Earnings Management: Evidence from Japan |
| |
| Authors: | Yasuda Yukihiro Okuda Shin'ya Konishi Masaru |
| |
| Institution: | (1) Department of Management, Tokyo Keizai University, 1-7-34 Minami, Kokubunji, Tokyo, 185-8502, Japan Tel.:;(2) Faculty of Distribution and Communication Sciences, Osaka Gakuin University, 2-36-1 Kishibe-minami, Suita, Osaka, 564-8511, Japan Tel.:;(3) Graduate School of Commerce and Management, Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo, 186-8601, Japan Tel.: |
| |
| Abstract: | Using stock price data drawn from the 1990s in Japan, this paper empirically shows that bank risk is negatively associated with discretionary accruals, indicating that investors misinterpreted high reported earnings as favorable information about bank financial health. We also show that the negative relationship was very powerful prior to the major bank failures in late 1997 and 1998, but it diminished subsequent to the failures. We conclude that investors started to anticipate potential manipulation of financial reports by bank managers more rationally after the major bank failures. |
| |
| Keywords: | bank risk earnings management discretionary accruals inefficient market |
| 本文献已被 SpringerLink 等数据库收录！ |
|
