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dc.contributor.authorLuu, Hiep Ngoc
dc.contributor.authorWilson, John
dc.contributor.authorNguyen, Linh
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 .
dc.identifier.otherPURE: 278291141
dc.identifier.otherPURE UUID: 45b8d57b-9599-4e2d-8d97-da549eefafb1
dc.identifier.otherORCID: /0000-0002-9554-9332/work/111210035
dc.identifier.otherORCID: /0000-0003-0956-4227/work/111210260
dc.identifier.otherWOS: 000777900900001
dc.identifier.otherScopus: 85128220015
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.relation.ispartofEuropean Journal of Financeen
dc.rightsCopyright © 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 (, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.en
dc.subjectBank deregulationen
dc.subjectDiscretionary loan loss provisionsen
dc.subjectOrganizational cultureen
dc.subjectTextual analysisen
dc.subjectHG Financeen
dc.titleOrganizational culture, competition and bank loan loss provisioningen
dc.typeJournal articleen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews. School of Managementen
dc.contributor.institutionUniversity of St Andrews. Centre for Responsible Banking and Financeen
dc.description.statusPeer revieweden

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