The Experts below are selected from a list of 10014 Experts worldwide ranked by ideXlab platform
Erick Rading Outa - One of the best experts on this subject based on the ideXlab platform.
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bank earnings management using commission and fee income the role of investor protection and Economic Fluctuation
Journal of Applied Accounting Research, 2019Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:Purpose The purpose of this paper is to investigate whether banks use commission and fee (CF) income to manage reported earnings as an income-increasing or income smoothing strategy. Design/methodology/approach The authors employ the regression methodology to detect real earnings management. Findings The authors find that banks use CF income for income smoothing purposes and this behaviour persists during recessionary periods and in environments with stronger investor protection. The implication of the findings is that bank non-interest income which achieves diversification gains to banks is also used to manipulate reported earnings. Research limitations/implications The findings show that real earnings management is prevalent among banks in Africa. Further research into earnings management should examine real earnings management among non-financial firms in developing regions. Practical implications From an accounting standard setting perspective, the evidence suggests the need for national/international standard setters to adopt strict revenue recognition rules that ensure that banks or firms report the actual fees they make, and to discourage banks from delaying (or deferring) the collection of fee income to manage or smooth reported earnings opportunistically. Originality/value This study contributes to the positive accounting theory (PAT) literature which examines the accounting and non-accounting decisions that influence managers’ choice of accounting methods in financial reporting. Extending the PAT, the authors show that certain conditions can incentivize managers to engage in earning management such as during recessions and weak institutional quality or weak investor protection.
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bank earnings management using commission and fee income the role of investor protection and Economic Fluctuation
2019Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:We investigate whether banks use commission and fee income to manage reported earnings as an income-increasing or income smoothing strategy. We find that banks use commission and fee income for income smoothing purposes and this behaviour persist during recessionary periods and in environments with stronger investor protection. The implication of the findings is that bank non-interest income which achieves diversification gains to banks is also used to manipulate reported earnings. Our findings show that real earnings management is prevalent among banks in Africa. Further research into earnings management should examine real earnings management among non-financial firms in developing regions. From an accounting standard setting perspective, our evidence suggests the need for national/international standard setters to adopt strict revenue recognition rules that ensure that banks or firms report the actual fees they make, and to discourage banks from delaying (or deferring) the collection of fee income to manage or smooth reported earnings opportunistically.
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bank income smoothing in south africa role of ownership ifrs and Economic Fluctuation
International Journal of Emerging Markets, 2018Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:The purpose of this paper is to examine the determinants of the use of loan loss provisions (LLPs) to smooth income by banks in South Africa. More specifically, the authors examine the influence of ownership, IFRS disclosure rules and Economic Fluctuation on the income smoothing behaviour of South African banks while controlling for the traditional determinants of bank income smoothing via LLPs.,The study employs fixed effect regression methodology to estimate the determinants of discretionary LLPs.,The authors find that South African banks do not use LLPs to smooth income when they are: under-capitalised, have large non-performing loans and have a moderate ownership concentration. On the other hand, income smoothing is pronounced when South African banks are rather more profitable during Economic boom periods, well-capitalised during boom periods and is pronounced among banks that adopt IFRS and among banks with a Big 4 auditor. The authors also find that banks use LLPs for capital management purposes, and bank provisioning is procyclical with Economic Fluctuations.,Bank supervisors in South Africa should monitor the bank provisioning practices in South Africa closely to ensure that LLPs are not used as a substitute for bank capital. Banks in South Africa should not use sufficient provisioning as a substitute for sufficient bank capital. Second, the evidence for procyclical bank provisioning shows that provisioning by South African banks reinforce the current state of the economy and might compel bank supervisors in South Africa to consider the adoption of a dynamic provisioning system that is already adopted by bank supervisors in Spain, Peru, Uruguay, Colombia and Bolivia.,Bank income smoothing is an important issue because it has implications for banking stability and accounting transparency. There are few studies on bank income smoothing for emerging economies particularly in Africa where there are substantial differences in ownership and accounting rules. This is the first South African study to examine the influence of disclosure rules, ownership and Economic cycle Fluctuations on bank income smoothing behaviour via LLPs.
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bank income smoothing in south africa role of ownership ifrs and Economic Fluctuation
2018Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:We examine the determinants of the use of loan loss provisions to smooth income by banks in South Africa. More specifically, we examine the influence of ownership, IFRS disclosure rules and Economic Fluctuation on the income smoothing behaviour of South African banks while controlling for the traditional determinants of bank income smoothing via loan loss provisions. We find that South African banks do not use loan loss provisions to smooth income when they are (i) undercapitalised, (ii) have large non-performing loans and (iii) have a moderate ownership concentration. On the other hand, income smoothing is pronounced when South African banks are rather (iv) more profitable during Economic boom periods, (v) well-capitalised during boom periods (iv) and is pronounced among banks that adopt IFRS and among banks with a Big 4 auditor. We also find that banks use loan loss provisions for capital management purposes, and bank provisioning is procyclical with Economic Fluctuations. Bank supervisors in South Africa should monitor the bank provisioning practices in South Africa closely to ensure that loan loss provisions are not used as a substitute bank capital. Banks in South Africa should not use sufficient provisioning as a substitute for sufficient bank capital. Secondly, the evidence for procyclical bank provisioning shows that provisioning by South African banks reinforce the current state of the economy and might compel bank supervisors in South Africa to consider the adoption of a dynamic provisioning system that is already adopted by bank supervisors in Spain, Peru, Uruguay, Colombia and Bolivia.
Wim Van Oorschot - One of the best experts on this subject based on the ideXlab platform.
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Economic Fluctuation and Shifts in Popular Solidarity with Unemployed People
Shifting Solidarities, 2020Co-Authors: Wilfred Uunk, Wim Van OorschotAbstract:Over the past decades, the social protection of unemployed people has been high on policy agendas of many welfare states. Here, we address the question how the Dutch general public’s solidarity with the unemployed—in terms of the welfare benefits they would grant this group—has been influenced by Economic developments and changes in unemployment rates over a longer time period. We analyse repeated cross-section data from the Netherlands (1975–2010). Our findings show that in times of higher unemployment people’s solidarity with the unemployed is higher, while independently from that, in times of Economic downturn solidarity is lower. These macro-level effects vary only little across social groups, yet we do find that the unemployment rate affects people’s solidarity more positively during Economic good times.
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going with the flow the effect of Economic Fluctuation on people s solidarity with unemployed people
Social Indicators Research, 2019Co-Authors: Wilfred Uunk, Wim Van OorschotAbstract:Rising levels of unemployment in European welfare states have revived questions on the social protection of the unemployed and the people’s solidarity with this claimant group. Does people’s solidarity with the unemployed—in terms of the welfare benefits they would grant this group—decrease when the economy fares ill and unemployment is on the rise, or does solidarity increase as many more people are at risk of losing their jobs? And, do changes in Economic conditions and unemployment affect the solidarity of all social groups alike, or are there differences with people’s socio-Economic position? In this study, we address these questions using repeated cross-section data from the Netherlands in the period 1975–2010. Our multilevel analyses show that in times of higher unemployment people’s solidarity with the unemployed is higher, while independently from that, in times of Economic downturn solidarity is lower. These macro-level effects vary only little across social groups, yet we do find that the unemployment rate affects people’s solidarity more positively during Economic good times. This indicates that people’s solidarity with the unemployed depends, among others, on the specific macro-Economic constellation of Economic welfare and unemployment.
Peterson K Ozili - One of the best experts on this subject based on the ideXlab platform.
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bank earnings management using commission and fee income the role of investor protection and Economic Fluctuation
Journal of Applied Accounting Research, 2019Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:Purpose The purpose of this paper is to investigate whether banks use commission and fee (CF) income to manage reported earnings as an income-increasing or income smoothing strategy. Design/methodology/approach The authors employ the regression methodology to detect real earnings management. Findings The authors find that banks use CF income for income smoothing purposes and this behaviour persists during recessionary periods and in environments with stronger investor protection. The implication of the findings is that bank non-interest income which achieves diversification gains to banks is also used to manipulate reported earnings. Research limitations/implications The findings show that real earnings management is prevalent among banks in Africa. Further research into earnings management should examine real earnings management among non-financial firms in developing regions. Practical implications From an accounting standard setting perspective, the evidence suggests the need for national/international standard setters to adopt strict revenue recognition rules that ensure that banks or firms report the actual fees they make, and to discourage banks from delaying (or deferring) the collection of fee income to manage or smooth reported earnings opportunistically. Originality/value This study contributes to the positive accounting theory (PAT) literature which examines the accounting and non-accounting decisions that influence managers’ choice of accounting methods in financial reporting. Extending the PAT, the authors show that certain conditions can incentivize managers to engage in earning management such as during recessions and weak institutional quality or weak investor protection.
-
bank earnings management using commission and fee income the role of investor protection and Economic Fluctuation
2019Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:We investigate whether banks use commission and fee income to manage reported earnings as an income-increasing or income smoothing strategy. We find that banks use commission and fee income for income smoothing purposes and this behaviour persist during recessionary periods and in environments with stronger investor protection. The implication of the findings is that bank non-interest income which achieves diversification gains to banks is also used to manipulate reported earnings. Our findings show that real earnings management is prevalent among banks in Africa. Further research into earnings management should examine real earnings management among non-financial firms in developing regions. From an accounting standard setting perspective, our evidence suggests the need for national/international standard setters to adopt strict revenue recognition rules that ensure that banks or firms report the actual fees they make, and to discourage banks from delaying (or deferring) the collection of fee income to manage or smooth reported earnings opportunistically.
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bank income smoothing in south africa role of ownership ifrs and Economic Fluctuation
International Journal of Emerging Markets, 2018Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:The purpose of this paper is to examine the determinants of the use of loan loss provisions (LLPs) to smooth income by banks in South Africa. More specifically, the authors examine the influence of ownership, IFRS disclosure rules and Economic Fluctuation on the income smoothing behaviour of South African banks while controlling for the traditional determinants of bank income smoothing via LLPs.,The study employs fixed effect regression methodology to estimate the determinants of discretionary LLPs.,The authors find that South African banks do not use LLPs to smooth income when they are: under-capitalised, have large non-performing loans and have a moderate ownership concentration. On the other hand, income smoothing is pronounced when South African banks are rather more profitable during Economic boom periods, well-capitalised during boom periods and is pronounced among banks that adopt IFRS and among banks with a Big 4 auditor. The authors also find that banks use LLPs for capital management purposes, and bank provisioning is procyclical with Economic Fluctuations.,Bank supervisors in South Africa should monitor the bank provisioning practices in South Africa closely to ensure that LLPs are not used as a substitute for bank capital. Banks in South Africa should not use sufficient provisioning as a substitute for sufficient bank capital. Second, the evidence for procyclical bank provisioning shows that provisioning by South African banks reinforce the current state of the economy and might compel bank supervisors in South Africa to consider the adoption of a dynamic provisioning system that is already adopted by bank supervisors in Spain, Peru, Uruguay, Colombia and Bolivia.,Bank income smoothing is an important issue because it has implications for banking stability and accounting transparency. There are few studies on bank income smoothing for emerging economies particularly in Africa where there are substantial differences in ownership and accounting rules. This is the first South African study to examine the influence of disclosure rules, ownership and Economic cycle Fluctuations on bank income smoothing behaviour via LLPs.
-
bank income smoothing in south africa role of ownership ifrs and Economic Fluctuation
2018Co-Authors: Peterson K Ozili, Erick Rading OutaAbstract:We examine the determinants of the use of loan loss provisions to smooth income by banks in South Africa. More specifically, we examine the influence of ownership, IFRS disclosure rules and Economic Fluctuation on the income smoothing behaviour of South African banks while controlling for the traditional determinants of bank income smoothing via loan loss provisions. We find that South African banks do not use loan loss provisions to smooth income when they are (i) undercapitalised, (ii) have large non-performing loans and (iii) have a moderate ownership concentration. On the other hand, income smoothing is pronounced when South African banks are rather (iv) more profitable during Economic boom periods, (v) well-capitalised during boom periods (iv) and is pronounced among banks that adopt IFRS and among banks with a Big 4 auditor. We also find that banks use loan loss provisions for capital management purposes, and bank provisioning is procyclical with Economic Fluctuations. Bank supervisors in South Africa should monitor the bank provisioning practices in South Africa closely to ensure that loan loss provisions are not used as a substitute bank capital. Banks in South Africa should not use sufficient provisioning as a substitute for sufficient bank capital. Secondly, the evidence for procyclical bank provisioning shows that provisioning by South African banks reinforce the current state of the economy and might compel bank supervisors in South Africa to consider the adoption of a dynamic provisioning system that is already adopted by bank supervisors in Spain, Peru, Uruguay, Colombia and Bolivia.
Wilfred Uunk - One of the best experts on this subject based on the ideXlab platform.
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Economic Fluctuation and Shifts in Popular Solidarity with Unemployed People
Shifting Solidarities, 2020Co-Authors: Wilfred Uunk, Wim Van OorschotAbstract:Over the past decades, the social protection of unemployed people has been high on policy agendas of many welfare states. Here, we address the question how the Dutch general public’s solidarity with the unemployed—in terms of the welfare benefits they would grant this group—has been influenced by Economic developments and changes in unemployment rates over a longer time period. We analyse repeated cross-section data from the Netherlands (1975–2010). Our findings show that in times of higher unemployment people’s solidarity with the unemployed is higher, while independently from that, in times of Economic downturn solidarity is lower. These macro-level effects vary only little across social groups, yet we do find that the unemployment rate affects people’s solidarity more positively during Economic good times.
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going with the flow the effect of Economic Fluctuation on people s solidarity with unemployed people
Social Indicators Research, 2019Co-Authors: Wilfred Uunk, Wim Van OorschotAbstract:Rising levels of unemployment in European welfare states have revived questions on the social protection of the unemployed and the people’s solidarity with this claimant group. Does people’s solidarity with the unemployed—in terms of the welfare benefits they would grant this group—decrease when the economy fares ill and unemployment is on the rise, or does solidarity increase as many more people are at risk of losing their jobs? And, do changes in Economic conditions and unemployment affect the solidarity of all social groups alike, or are there differences with people’s socio-Economic position? In this study, we address these questions using repeated cross-section data from the Netherlands in the period 1975–2010. Our multilevel analyses show that in times of higher unemployment people’s solidarity with the unemployed is higher, while independently from that, in times of Economic downturn solidarity is lower. These macro-level effects vary only little across social groups, yet we do find that the unemployment rate affects people’s solidarity more positively during Economic good times. This indicates that people’s solidarity with the unemployed depends, among others, on the specific macro-Economic constellation of Economic welfare and unemployment.
Zhao Juan - One of the best experts on this subject based on the ideXlab platform.
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sectoral Fluctuations and macro Economic Fluctuation based on input output matrix
Energy Procedia, 2011Co-Authors: Zhao JuanAbstract:Abstract This paper establishes a bivariate VAR model in sectoral level. Using a weighted matrix from an input -output table, we model an Economic system which reflects the interdependence of all the sectors. During empirical analysis, we estimate the VAR model for 17 Chinese sectors in the sample period from 1985 to 2008. Generalized impulse response function is used to analyze the dynamic effects of real output growth and fixed asset investment growth. The results show that Chinese Economic system has diversity and no any industry has absolute dominance in the system. To some extent, the Economic growth in China is pulled by investment on short term. We also find that when the real output of Manufacture of Machinery and Equipment is given one negative shock, the volatility of the Economic system mainly comes from the manufacturing industries. If the authorities take policy to stimulate the production, it's possible to aggravate the Fluctuation in the adjustment process of Economic system. The economy will be short -term overheating.
