Hung, C.-H. D. , Jiang, Y., Liu, F. H. and Tu, H. (2018) Competition or manipulation? An empirical evidence of determinants of the earnings persistence of the U.S. banks. Journal of Banking and Finance, 88, pp. 442-454. (doi: 10.1016/j.jbankfin.2018.01.010)
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Abstract
We examine the impact of competition on bank earnings persistence by exploiting a natural experiment following interstate banking deregulation that increased bank competition. We find that bank earnings adjustment speed increases after their states implement the deregulation. This relationship is weakened, however, with the increase of bank's abilities to sustain earnings, as reflected in size, diversification, managerial efficiency and safety. We further find that the impact of compeititon on bank earnings adjustment speed is direct but not indirectly through the channel of earnings management.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | jiang, yuxiang and Hung, Dr Daniel |
Authors: | Hung, C.-H. D., Jiang, Y., Liu, F. H., and Tu, H. |
College/School: | College of Social Sciences > Adam Smith Business School > Accounting and Finance |
Journal Name: | Journal of Banking and Finance |
Publisher: | Elsevier |
ISSN: | 0378-4266 |
ISSN (Online): | 1872-6372 |
Published Online: | 31 January 2018 |
Copyright Holders: | Copyright © 2018 Elsevier B.V. |
First Published: | First published in Journal of Banking and Finance 88:442-454 |
Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher |
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