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Organizational culture, competition and bank loan loss provisioning
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dc.contributor.author | Luu, Hiep Ngoc | |
dc.contributor.author | Wilson, John | |
dc.contributor.author | Nguyen, Linh | |
dc.date.accessioned | 2022-04-05T08:30:14Z | |
dc.date.available | 2022-04-05T08:30:14Z | |
dc.date.issued | 2022-04-04 | |
dc.identifier.citation | Luu , H N , Wilson , J & Nguyen , L 2022 , ' Organizational culture, competition and bank loan loss provisioning ' , European Journal of Finance , vol. Latest Articles . https://doi.org/10.1080/1351847X.2022.2053732 | en |
dc.identifier.issn | 1351-847X | |
dc.identifier.other | PURE: 278291141 | |
dc.identifier.other | PURE UUID: 45b8d57b-9599-4e2d-8d97-da549eefafb1 | |
dc.identifier.other | ORCID: /0000-0002-9554-9332/work/111210035 | |
dc.identifier.other | ORCID: /0000-0003-0956-4227/work/111210260 | |
dc.identifier.other | WOS: 000777900900001 | |
dc.identifier.other | Scopus: 85128220015 | |
dc.identifier.uri | http://hdl.handle.net/10023/25141 | |
dc.description.abstract | This paper investigates how banks with different organizational cultures (defined as either control-dominant, collaborate-dominant, compete-dominant, create-dominant) manage their loan loss provisions (LLPs) in response to intensified industry competition. For identification, we utilize the change in state-level competition that followed the passage of the US Interstate Banking and Branching Efficiency Act (IBBEA) of 1994 as a quasi-natural experiment. We find that banks with a collaborate-dominant organizational culture are less likely to exercise discretion over LLPs. In contrast, banks with compete- and create-dominant organizational cultures are more likely to utilize discretionary LLPs when competition increases. Moreover, banks use discretionary LLPs to smooth income and signal private information to outsiders. Banks with collaborate-dominant organizational cultures exhibit less income smoothing. Counterparts with a create-dominant organizational culture use discretionary LLPs to signal information to outside stakeholders. Finally, banks with a create-dominant organizational culture are more likely to be subject to formal regulatory enforcement actions. | |
dc.format.extent | 27 | |
dc.language.iso | eng | |
dc.relation.ispartof | European Journal of Finance | en |
dc.rights | Copyright © 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. | en |
dc.subject | Bank deregulation | en |
dc.subject | Competition | en |
dc.subject | Discretionary loan loss provisions | en |
dc.subject | Organizational culture | en |
dc.subject | Textual analysis | en |
dc.subject | HG Finance | en |
dc.subject | 3rd-DAS | en |
dc.subject | MCC | en |
dc.subject.lcc | HG | en |
dc.title | Organizational culture, competition and bank loan loss provisioning | en |
dc.type | Journal article | en |
dc.description.version | Publisher PDF | en |
dc.contributor.institution | University of St Andrews. School of Management | en |
dc.contributor.institution | University of St Andrews. Centre for Responsible Banking and Finance | en |
dc.identifier.doi | https://doi.org/10.1080/1351847X.2022.2053732 | |
dc.description.status | Peer reviewed | en |
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