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Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank >

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dc.contributor.authorBornemann, Svenen_US
dc.contributor.authorKick, Thomasen_US
dc.contributor.authorMemmel, Christophen_US
dc.contributor.authorPfingsten, Andreasen_US
dc.date.accessioned2011-01-14en_US
dc.date.accessioned2011-01-31T15:25:41Z-
dc.date.available2011-01-31T15:25:41Z-
dc.date.issued2010en_US
dc.identifier.isbn978-3-86558-669-8en_US
dc.identifier.urihttp://hdl.handle.net/10419/43885-
dc.description.abstractSection 340f of the German Commercial Code allows banks to provision against the special risks inherent to the banking business by building hidden reserves. Beyond risk provisioning, these reserves are implicitly accepted as an earnings management device. By analyzing financial statements of German banks for the period 1995 through 2009, we see these hidden reserves being used to (1) avoid a negative net income, (2) avoid a drop in net income compared to the previous year, (3) avoid a shortfall in net income compared to a peer group, and (4) reduce the variability of banks' net income over time. We (5) find a diminished relevance of avoiding a drop in net income as well as a shortfall relative to the peer group during the financial crisis. Finally, we are (6) unable to confirm any differences in the relevance of hidden reserves for earnings management between listed and non-listed banks.en_US
dc.language.isoengen_US
dc.publisherDeutsche Bundesbank Frankfurt am Mainen_US
dc.relation.ispartofseriesDiscussion Paper Series 2: Banking and Financial Studies 2010,13en_US
dc.subject.jelC23en_US
dc.subject.jelG21en_US
dc.subject.jelM41en_US
dc.subject.ddc330en_US
dc.subject.keywordEarnings managementen_US
dc.subject.keywordIncome smoothingen_US
dc.subject.keywordHidden reservesen_US
dc.subject.keywordProspect theoryen_US
dc.subject.keywordFinancial institutionen_US
dc.subject.stwBanken_US
dc.subject.stwBilanzpolitiken_US
dc.subject.stwStille Reserveen_US
dc.subject.stwProspect Theoryen_US
dc.subject.stwSch├Ątzungen_US
dc.subject.stwDeutschlanden_US
dc.titleAre banks using hidden reserves to beat earnings benchmarks? Evidence from Germanyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn643976094en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bubdp2:201013-
Appears in Collections:Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank

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