This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance sheets overvalue real estate-related assets co

Banks' use of accounting discretion in estimating loan loss provisions (LLPs) during the financial crisis has come under severe criticism. We argue, however, th

We show that a pattern of earnings management in bank financial statements has little bearing on downside risk during quiet periods, but seems to have a big imp

This paper investigates what we can learn from the financial crisis about the link between accounting and financial stability. The picture that emerges ten year