CEO Overconfidence, Loan-Loss Provisions, and the Effect of Country Corruption: An International Investigation

被引：1
|
作者：
Lee, Hansol [1 ]
Choi, Dongjoon [1 ]
Lee, Ho-Young [1 ]
Yoon, Inkyung [1 ]
机构：
[1] Yonsei Univ, Sch Business, 50 Yonsei Ro, Seoul, South Korea
来源：
EMERGING MARKETS FINANCE AND TRADE | 2023年 / 59卷 / 06期
关键词：
Loan-loss provisions; CEO overconfidence; corruption; international investigation; CEO characteristics; CROSS-COUNTRY; CORPORATE GOVERNANCE; EARNINGS MANAGEMENT; CAPITAL MANAGEMENT; DETERMINANTS; INSTITUTIONS; BANKS; TESTS; IFRS;
D O I：
10.1080/1540496X.2022.2153591
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This study examines the relationship between CEO overconfidence and bank recognition of loan-loss provisions (LLPs) and the effect of country corruption level on this relationship by analyzing cross-country data. We use a sample of 3,047 financial institutions in 53 different countries over 2013-2018. The results reveal that overconfident CEOs are more likely to recognize lower LLPs, suggesting that they overestimate (underestimate) favorable (unfavorable) outcomes of loan collection. Furthermore, we find that lower country-level corruption attenuates this relationship. We further show that overconfident CEOs reduce only the recognition of discretionary components of LLPs.
引用
收藏
页码：1835 / 1851
页数：17
相关论文
共 31 条
  • [1] The Effect of Credit Competition on Banks' Loan-Loss Provisions
    Dou, Yiwei
    Ryan, Stephen G.
    Zou, Youli
    [J]. JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2018, 53 (03) : 1195 - 1226
  • [2] Cross-country determinants of bank income smoothing by managing loan-loss provisions
    Fonseca, Ana Rosa
    Gonzalez, Francisco
    [J]. JOURNAL OF BANKING & FINANCE, 2008, 32 (02) : 217 - 228
  • [3] Macroprudential policy instruments and procyclicality of loan-loss provisions - Cross-country evidence
    Olszak, Malgorzata
    Roszkowska, Sylwia
    Kowalska, Iwona
    [J]. JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY, 2018, 54 : 228 - 257
  • [4] What Drives Heterogeneity of Cyclicality of Loan-Loss Provisions in the EU?
    Olszak, Malgorzata
    Pipien, Mateusz
    Kowalska, Iwona
    Roszkowska, Sylwia
    [J]. JOURNAL OF FINANCIAL SERVICES RESEARCH, 2017, 51 (01) : 55 - 96
  • [5] What Drives Heterogeneity of Cyclicality of Loan-Loss Provisions in the EU?
    Małgorzata Olszak
    Mateusz Pipień
    Iwona Kowalska
    Sylwia Roszkowska
    [J]. Journal of Financial Services Research, 2017, 51 : 55 - 96
  • [6] Procyclicality of loan-loss provisions and competitive environment - a global perspective
    Olszak, Malgorzata Anna
    Kowalska, Iwona
    [J]. INTERNATIONAL JOURNAL OF EMERGING MARKETS, 2023, 18 (12) : 5940 - 5971
  • [7] Fiscal Deficits, Bank Credit Risk, and Loan-Loss Provisions
    Gurgel Silva, Felipe Bastos
    [J]. JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2021, 56 (05) : 1537 - 1589
  • [8] Nonlinear dynamics in discretionary accruals: An analysis of bank loan-loss provisions
    Balboa, Marina
    Lopez-Espinosa, German
    Rubia, Antonio
    [J]. JOURNAL OF BANKING & FINANCE, 2013, 37 (12) : 5186 - 5207
  • [9] Hybrid Quantum-Classical Algorithms for Loan-Collection Optimization with Loan-Loss Provisions
    Tangpanitanon, Jirawat
    Saiphet, Jirawat
    Palittapongarnpim, Pantita
    Chaiwongkhot, Poompong
    Prugsanapan, Pinn
    Raksasri, Nuntanut
    Wannasiwaporn, Wipada
    Raksri, Yarnvith
    Thajchayapong, Pairash
    Chotibut, Thiparat
    [J]. PHYSICAL REVIEW APPLIED, 2023, 19 (06):
  • [10] Earnings and capital management and signaling: the use of loan-loss provisions by European banks
    Curcio, Domenico
    Hasan, Iftekhar
    [J]. EUROPEAN JOURNAL OF FINANCE, 2015, 21 (01): : 26 - 50
1234