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dc.contributor.authorLuu, Hiep Ngoc
dc.contributor.authorWilson, John
dc.contributor.authorNguyen, Linh
dc.date.accessioned2022-04-05T08:30:14Z
dc.date.available2022-04-05T08:30:14Z
dc.date.issued2022-04-04
dc.identifier278291141
dc.identifier45b8d57b-9599-4e2d-8d97-da549eefafb1
dc.identifier000777900900001
dc.identifier85128220015
dc.identifier.citationLuu , 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.2022.2053732en
dc.identifier.issn1351-847X
dc.identifier.otherORCID: /0000-0002-9554-9332/work/111210035
dc.identifier.otherORCID: /0000-0003-0956-4227/work/111210260
dc.identifier.urihttps://hdl.handle.net/10023/25141
dc.description.abstractThis 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.extent27
dc.format.extent2595792
dc.language.isoeng
dc.relation.ispartofEuropean Journal of Financeen
dc.subjectBank deregulationen
dc.subjectCompetitionen
dc.subjectDiscretionary loan loss provisionsen
dc.subjectOrganizational cultureen
dc.subjectTextual analysisen
dc.subjectHG Financeen
dc.subject3rd-DASen
dc.subjectMCCen
dc.subject.lccHGen
dc.titleOrganizational culture, competition and bank loan loss provisioningen
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews. School of Managementen
dc.contributor.institutionUniversity of St Andrews. Centre for Responsible Banking and Financeen
dc.identifier.doi10.1080/1351847X.2022.2053732
dc.description.statusPeer revieweden


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