The Experts below are selected from a list of 19539 Experts worldwide ranked by ideXlab platform
Karen K Nelson - One of the best experts on this subject based on the ideXlab platform.
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management of the Loss Reserve accrual and the distribution of earnings in the property casualty insurance industry
Journal of Accounting and Economics, 2003Co-Authors: William H Beaver, Maureen F. Mcnichols, Karen K NelsonAbstract:Abstract We document that property-casualty insurers with small positive earnings understate Loss Reserves relative to insurers with small negative earnings. Furthermore, Loss Reserves are managed across the entire distribution of earnings, with the most income-increasing Reserve accruals reported by small profit firms, and the most income-decreasing Reserve accruals reported by firms with the highest earnings. We analyze this pattern separately for public, private, and mutual companies, and find that public companies and mutuals manage Loss Reserves to avoid Losses, but that private companies do not. We also find evidence of Reserve management to avoid Losses by financially healthy and distressed firms.
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management of the Loss Reserve accrual and the distribution of earnings in the property casualty insurance industry
Social Science Research Network, 2000Co-Authors: William H Beaver, Maureen F. Mcnichols, Karen K NelsonAbstract:We document that firms reporting small positive earnings significantly understate the Loss Reserve accrual. Our findings also indicate that earnings management is not concentrated in these firms, but is pervasive across the entire earnings distribution. Consistent with income smoothing, the firms in the left tail of the earnings distribution understate Reserve accruals while those in the right tail overstate Reserve accruals. The results are similar for both stock and mutual insurers. We also show that both financially healthy and distressed firms manage earnings to avoid Losses, and that both types of firms contribute to an overall appearance of income smoothing and opportunistic regulatory reporting.
William H Beaver - One of the best experts on this subject based on the ideXlab platform.
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management of the Loss Reserve accrual and the distribution of earnings in the property casualty insurance industry
Journal of Accounting and Economics, 2003Co-Authors: William H Beaver, Maureen F. Mcnichols, Karen K NelsonAbstract:Abstract We document that property-casualty insurers with small positive earnings understate Loss Reserves relative to insurers with small negative earnings. Furthermore, Loss Reserves are managed across the entire distribution of earnings, with the most income-increasing Reserve accruals reported by small profit firms, and the most income-decreasing Reserve accruals reported by firms with the highest earnings. We analyze this pattern separately for public, private, and mutual companies, and find that public companies and mutuals manage Loss Reserves to avoid Losses, but that private companies do not. We also find evidence of Reserve management to avoid Losses by financially healthy and distressed firms.
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management of the Loss Reserve accrual and the distribution of earnings in the property casualty insurance industry
Social Science Research Network, 2000Co-Authors: William H Beaver, Maureen F. Mcnichols, Karen K NelsonAbstract:We document that firms reporting small positive earnings significantly understate the Loss Reserve accrual. Our findings also indicate that earnings management is not concentrated in these firms, but is pervasive across the entire earnings distribution. Consistent with income smoothing, the firms in the left tail of the earnings distribution understate Reserve accruals while those in the right tail overstate Reserve accruals. The results are similar for both stock and mutual insurers. We also show that both financially healthy and distressed firms manage earnings to avoid Losses, and that both types of firms contribute to an overall appearance of income smoothing and opportunistic regulatory reporting.
Ganapathi S Narayanamoorthy - One of the best experts on this subject based on the ideXlab platform.
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did the sec impact banks loan Loss Reserve policies and their informativeness
Journal of Accounting and Economics, 2013Co-Authors: Paul J Beck, Ganapathi S NarayanamoorthyAbstract:Abstract During the late 1990s, the SEC alleged that banks were overstating loan Loss allowances to establish cookie jar Reserves. Their intervention in bank accounting culminated in 2001 with new guidance (SAB 102) designed to improve financial reporting quality. We show that banks' allowance estimation changed in response to the SEC's intervention. While allowance informativeness (as proxied by the ability to explain future Losses) improved for Strong Banks, informativeness declined for Weak Banks whose incentives are to understate allowances. Our results help to explain why some (Weak) banks delayed Loss recognition during the recent financial crisis.
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did the sec impact banks loan Loss Reserve policies and their informativeness
2012Co-Authors: Paul J Beck, Ganapathi S NarayanamoorthyAbstract:During the late 1990’s, the SEC alleged that banks were overstating their loan Loss allowances to establish cookie jar Reserves and issued new guidance on allowance estimation designed to improve financial reporting quality. We show that banks’ estimation methods changed in response to the guidance and the changes significantly affected the informativeness of the allowances as proxied by their ability to explain future Losses. While the SEC’s guidance has improved the informativeness of allowances for strong banks, it has had the opposite effect on Weak Banks whose incentives are to understate allowances. Our results help to explain why some (Weak) banks delayed Loss recognition during the recent financial crisis.
Maureen F. Mcnichols - One of the best experts on this subject based on the ideXlab platform.
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management of the Loss Reserve accrual and the distribution of earnings in the property casualty insurance industry
Journal of Accounting and Economics, 2003Co-Authors: William H Beaver, Maureen F. Mcnichols, Karen K NelsonAbstract:Abstract We document that property-casualty insurers with small positive earnings understate Loss Reserves relative to insurers with small negative earnings. Furthermore, Loss Reserves are managed across the entire distribution of earnings, with the most income-increasing Reserve accruals reported by small profit firms, and the most income-decreasing Reserve accruals reported by firms with the highest earnings. We analyze this pattern separately for public, private, and mutual companies, and find that public companies and mutuals manage Loss Reserves to avoid Losses, but that private companies do not. We also find evidence of Reserve management to avoid Losses by financially healthy and distressed firms.
-
management of the Loss Reserve accrual and the distribution of earnings in the property casualty insurance industry
Social Science Research Network, 2000Co-Authors: William H Beaver, Maureen F. Mcnichols, Karen K NelsonAbstract:We document that firms reporting small positive earnings significantly understate the Loss Reserve accrual. Our findings also indicate that earnings management is not concentrated in these firms, but is pervasive across the entire earnings distribution. Consistent with income smoothing, the firms in the left tail of the earnings distribution understate Reserve accruals while those in the right tail overstate Reserve accruals. The results are similar for both stock and mutual insurers. We also show that both financially healthy and distressed firms manage earnings to avoid Losses, and that both types of firms contribute to an overall appearance of income smoothing and opportunistic regulatory reporting.
Paul J Beck - One of the best experts on this subject based on the ideXlab platform.
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did the sec impact banks loan Loss Reserve policies and their informativeness
Journal of Accounting and Economics, 2013Co-Authors: Paul J Beck, Ganapathi S NarayanamoorthyAbstract:Abstract During the late 1990s, the SEC alleged that banks were overstating loan Loss allowances to establish cookie jar Reserves. Their intervention in bank accounting culminated in 2001 with new guidance (SAB 102) designed to improve financial reporting quality. We show that banks' allowance estimation changed in response to the SEC's intervention. While allowance informativeness (as proxied by the ability to explain future Losses) improved for Strong Banks, informativeness declined for Weak Banks whose incentives are to understate allowances. Our results help to explain why some (Weak) banks delayed Loss recognition during the recent financial crisis.
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did the sec impact banks loan Loss Reserve policies and their informativeness
2012Co-Authors: Paul J Beck, Ganapathi S NarayanamoorthyAbstract:During the late 1990’s, the SEC alleged that banks were overstating their loan Loss allowances to establish cookie jar Reserves and issued new guidance on allowance estimation designed to improve financial reporting quality. We show that banks’ estimation methods changed in response to the guidance and the changes significantly affected the informativeness of the allowances as proxied by their ability to explain future Losses. While the SEC’s guidance has improved the informativeness of allowances for strong banks, it has had the opposite effect on Weak Banks whose incentives are to understate allowances. Our results help to explain why some (Weak) banks delayed Loss recognition during the recent financial crisis.
