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Research Collection School Of Accountancy

Finance and Financial Management

Risk-taking

Publication Year

Articles 1 - 3 of 3

Full-Text Articles in Business

Marital Status And Earnings Management, Gilles Hillary, Sterling Huang, Yanping Xu Jan 2017

Marital Status And Earnings Management, Gilles Hillary, Sterling Huang, Yanping Xu

Research Collection School Of Accountancy

In this note, we examine the effect of CEO marital status on the riskiness of financial reporting. Using multiple proxies, we find that firms headed by a single CEO display a higher degree of earnings management than those headed by a married CEO. The effect is economically significant. Our results persist in an instrumental variable regression, suggesting that our results are not driven by innate heterogeneity in preferences.


Bank Competition And Financial Stability: Evidence From The Financial Crisis, Brian Atkins, Lynn Li, Jeffrey Ng, Tjomme O. Rusticus Feb 2016

Bank Competition And Financial Stability: Evidence From The Financial Crisis, Brian Atkins, Lynn Li, Jeffrey Ng, Tjomme O. Rusticus

Research Collection School Of Accountancy

We examine the link between bank competition and financial stability using the recent financial crisis as the setting. We utilize variation in banking competition at the state level and find that banks facing less competition are more likely to engage in risky activities, more likely to face regulatory intervention, and more likely to fail. Focusing on the real estate market, we find that states with less competition had higher rates of mortgage approval, experienced greater housing price inflation before the crisis, and a steeper housing price decline during it. Overall, our study is consistent with greater competition increasing financial stability.


Influence Of National Culture On Accounting Conservatism And Risk-Taking In The Banking Industry, Kanagaretn Kiridaran, Chee Yeow Lim, Gerald J. Lobo May 2014

Influence Of National Culture On Accounting Conservatism And Risk-Taking In The Banking Industry, Kanagaretn Kiridaran, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of banks and country-level indices for individualism and uncertainty avoidance as proxies for national culture, we study how differences in culture across countries affect accounting conservatism and bank risk-taking. Consistent with expectations, our cross-country analysis indicates that individualism is negatively (positively) related to conservatism (risk-taking) and uncertainty avoidance is positively (negatively) related to conservatism (risk-taking). We also find that cultures that encourage higher risk-taking experienced more bank failures and bank troubles during the recent financial crisis.