Detail The efficacy of accounting-based bank regulation: The case of the Basle Accord Bibliografi Author: Williams, Michael Grant ; Swanson, Charles (Advisor) Topik: BUSINESS ADMINISTRATION; ACCOUNTING Bahasa: (EN )    ISBN: 0-591-02488-8     Penerbit: University of Southern California     Tahun Terbit: 1996     Jenis: Theses - Dissertation Fulltext: 9636764.pdf (0.0B; 0 download) Abstract This paper examines the effects of the risk-based capital standards applied to U.S. banks pursuant to the Basle Accord, an international agreement signed in 1988. Banks could have complied with Basle either by changing their asset portfolios or by increasing their equity. Equity increases could have occurred through sales of stock, dividend cuts, intracompany transfers (essentially just paper shuffling), or earnings management through accounting-motivated actions such as gains trading or optimistic estimation of loan loss provisions. Only asset portfolio changes, stock issues, or dividend cuts would have been consistent with Basle's objective of reducing the probability of bank insolvency. Theoretical analysis indicates that banks would have incurred costs from any of the available strategies to comply with Basle with the exception of intracompany transfers (to the extent feasible) and possibly earnings management. Empirical findings are consistent with these two strategies having the least cost. Using bank Call Report data, this paper finds evidence consistent with banks responding to Basle by increasing equity and inconsistent with banks responding through asset portfolio changes. Most of the increased equity appears to have resulted not from real improvements in bank capitalization, through stock issues or dividend cuts. Instead banks appear to have increased equity through accounting manipulations and paper shuffling. These results cast serious doubt on the ability of accounting-based regulations, such as Basle, to achieve their purpose, in this case enhanced safety and soundness of the banking sector. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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