External Financing Needs and Early Adoption of Accounting Standards: Evidence from the Banking Industry

2020 ◽  
pp. 627-675
Author(s):  
Sophia I-Ling Wang
Keyword(s):  
Banking Industry ◽  
Accounting Standards ◽  
External Financing ◽  
Early Adoption

Bank External Financing and Early Adoption of SFAS 133

2018 ◽  
Vol 21 (03) ◽  
pp. 1850015
Author(s):  
Sophia I-Ling Wang
Keyword(s):  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Accounting ◽  
External Financing ◽  
Bank Holding Companies ◽  
Holding Companies ◽  
Early Adopters ◽  
Early Adoption ◽  
Derivative Instruments ◽  
Sfas 133

This study examines whether and how US bank holding companies that early adopted Statement of Financial Accounting Standards (SFAS) 133, “Accounting for Derivative Instruments and Hedging Activities,” experience changes in their external financing activities relative to banks that did not early adopt the standard. Consistent with predictions, the study shows that early adopters hold higher and experience greater changes in their leverage compared with nonearly adopters. In addition, early adopters experience greater shifts in weights of liabilities other than insured deposits in banks’ funding mix. This finding is consistent with banking literature which states that banks have shifted towards nondeposit debts to finance their balance sheet growth.

Early Adoption of SFAS No. 159: Lessons from Games (Almost) Played

2009 ◽  
Vol 23 (2) ◽  
pp. 181-199 ◽  
Author(s):  
Elaine Henry
Keyword(s):  
Accounting Standards ◽  
Fair Value ◽  
Financial Assets ◽  
Early Adoption

SYNOPSIS: This paper examines instances of firms that early adopted SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, and then rescinded or revised their early adoption of the standard because apparently their implementation was not in keeping with the “intent and spirit” of the standard. These reversals imply opportunistic use of the implementation provisions in SFAS No. 159 and, as such, provide a useful blueprint for understanding the effects of the standard, which became effective for all firms in November 2007. An analysis of the disclosures by the rescinding firms indicates the importance of informal mechanisms in helping firms interpret and implement new accounting standards, which is particularly relevant given the lesser amounts of detailed guidance provided by standard setters in principles-based compared with rules-based standards.

scholarly journals Using External Financing in a One Factor Model Measuring the Volatility of Market Risk of Vietnam's Banking Industry During and After the Global Crisis

2019 ◽  
Vol 8 (2) ◽  
pp. 173-187
Author(s):  
Dinh Tran Ngoc Huy
Keyword(s):  
Banking Industry ◽  
Factor Model ◽  
Market Risk ◽  
Risk Level ◽  
Traditional Model ◽  
External Financing ◽  
Financial Reports ◽  
Listed Firms ◽  
The Government ◽  
The Impact

Abstract This paper evaluates the impact of external financing on market risk for the listed firms in Vietnam`s banking industry, especially during and after the financial crisis 2009-2011. First of all, by using quantitative and analytical methods to estimate asset and equity beta of total 9 listed companies in Vietnam banking industry with a proper traditional model, we found out that the beta values, in general, for many institutions are acceptable. Second, under 3 different scenarios of changing leverage (in 2011 financial reports, 30% up and 20% down), we recognized that the risk level, measured by equity and asset beta mean, decreases when leverage increases to 30% and increases more if leverage decreases down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity beta var, increases from 0,108 to 0,181 if the leverage increases to 30% whereas decreases to 0,073 if leverage decreases to 20%. But the dispersion measured by asset beta var decreases to 0,007 (leverage up 30%), showing leverage impact. Finally, this paper provides some outcomes that could provide companies and the government with more evidence in establishing their policies in governance.

scholarly journals PRUDENTIAL REGULATORY REGIMES, ACCOUNTING STANDARDS, AND EARNINGS MANAGEMENT IN THE BANKING INDUSTRY

2019 ◽  
Vol 21 (3) ◽  
pp. 367-394 ◽  
Author(s):  
Ali Ashraf ◽  
M. Kabir Hassan ◽  
Kyle J. Putnam ◽  
Arja Turunen-Red
Keyword(s):  
Earnings Management ◽  
Banking Industry ◽  
Accounting Standards ◽  
Income Smoothing ◽  
Loan Loss ◽  
Accounting Standard ◽  
Loan Loss Provision ◽  
Dynamic Provisioning ◽  
Regulatory Regimes

We analyze if a change in accounting standard or a change in prudential regulationimpacts banks’ loan loss provision. We find that, in general, the banks using aprinciples-based accounting standard exhibit a lower level of earnings managementcompared to banks using a rules-based accounting standard. When a country movesfrom pro-cyclical macro-prudential regulations to a dynamic provisioning regime,banks are more likely to set aside a larger amount of loan loss provision for the purposeof income smoothing.

scholarly journals Konsep Nilai Wajar (Fair Value) dalam Standar Akuntansi Berbasis IFRS di Indonesia Apa dan Bagaimana?

2012 ◽  
Vol 3 (1) ◽  
pp. 93
Author(s):  
Heri Sukendar W.
Keyword(s):  
Financial Reporting ◽  
Banking Industry ◽  
Accounting Standards ◽  
Fair Value ◽  
Reporting Standards ◽  
Accounting Standard ◽  
Book Value ◽  
Financial Reporting Standards ◽  
The Difference ◽  
International Accounting Standard

This paper is intended to explain the use of the concept of fair value instead of book value. The accounting world in Indonesia during the last few years have made convergency implementation of new accounting standards oriented to the International Financial Reporting Standards (IFRS) issued by International Accounting Standard Boars (IASB). This new accounting standard that emphasizes the concept of fair value compared with book value concept is outdated. The use of the concept of fair value of the difference and it turned out to be a trigger konvergency change the paradigm of the book value of a simpler, but less information is less transparent. The implementation of accounting standards konverjensi done gradually raises serious problems, this can be seen from postponed the application of PSAK 50 & PSAK 55 in the banking industry. Knowledge and experience of inadequate is a priority of fair value implementation difficulties.

Community Institutions and Initial Diffusion of Corporate Social Responsibility Practices in China's Banking Industry

2015 ◽  
Vol 11 (3) ◽  
pp. 441-468 ◽  
Author(s):  
Junxiu Sun ◽  
Feng Wang ◽  
Fanghua Wang ◽  
Haitao Yin
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Management Practices ◽  
Banking Industry ◽  
Economic Benefits ◽  
Csr Reporting ◽  
Community Institutions ◽  
Early Adoption ◽  
Corporate Social ◽  
Insight Into

ABSTRACTThe existing literature does not provide adequate insight into the initial diffusion of new management practices, especially those that yield no immediate economic benefits, and have not yet gained legitimacy. We study how firms’ local institutional environments influence early adoption behavior, examining the spread of corporate social responsibility (CSR) reports in China's banking industry from 2006 to 2011. We find that banks are more likely to be first movers of CSR reporting if they operate in communities where more companies publish CSR reports or where there are guidelines encouraging CSR reporting, and the impacts of these two institutional factors are further moderated by the length of time that banks have operated in communities. Our study highlights the usefulness of institutional theory in understanding the initial adoption of new management practices, when the organizational field is defined as a geographic community instead of an industry sector and its supply chain.

Occupational Stress And The Banking Industry

2017 ◽  
Author(s):  
Maria Michailidis ◽  
Evie Michailidis
Keyword(s):  
Occupational Stress ◽  
Banking Industry

Memperkuat Daya Saing Bank Syariah Dengan Meningkatkan Kemampuan Teknologi Informasi

Liquidity ◽  
2018 ◽  
Vol 1 (1) ◽  
pp. 32-41
Author(s):  
Amrizal Amrizal
Keyword(s):  
Information System ◽  
Credit Card ◽  
Banking Industry ◽  
Integrated System ◽  
Integrated Systems ◽  
Islamic Banks ◽  
Electronic Money ◽  
Electronic Transactions ◽  
Excellent Service ◽  
Debit Cards

Banking industry is very tight competition in all aspects. Results review from some literatures: journals and empirical data indicates that the banking industry has been applied information technology in order to provide excellent service to customers in the form of electronic transactions such as ATM, sms banking, e-commerce and so forth. Based on Bank Indonesia reports, the type of electronic transaction has been growing very rapidly between the transaction and Bilyetgiro Elekteronik Checks, ATM, Credit Card, Account Card Based (ATM and Debit Cards), Electronic Money, Delivery Chanel and RTGS. Those above transactions are relating to the Technology Information System and Integrated System. Integrated system is the combination of Hardskill which focus on knowledge and more to the integrity softskill (shidiq, trustworthy, tablig, fathonah). Islamic banks are ready to face competition both nationally and internationally, primarily face competition from the aspect of Integrated Systems. Bank Syariah Mandiri (BSM) developed e-banking features on an ongoing basis, among others

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