|
a Dr Ajlani IKBEL
b Pr Omri ABDELWAHED
LEVEL OF DISCLOSURE OF BANKS AND EARNINGS MANAGEMENT
ABSTRACT
This paper examines the relationship between disclosure of Tunisian banks and earnings management through the loan loss provisions. Our results suggest that disclosure is negatively and endogenously correlated with earnings management. When the bank discloses more information, it engages less in earnings management and when it engages in earnings management, it discloses less information. These results may have implications for regulators of the banking sector in Tunisia. They should require banks to improve their disclosures and to be more transparent especially with regard to the quality of their loan portfolios and their compliance with the regulations of the minimum capital.
Keywords: Bank disclosure, Earnings management, Loan Loss Provisions, Endogeneity
|
