Non‐traditional Banking Activities and Bank Financial Reporting Quality. (22nd April 2021)

• Record Type: Journal Article
• Authors: Guo, Mengyang; Jin, Justin; Liu, Yi; Nainar, S. M. Khalid
• Other Names: Goyal Vidhan K. guestEditor.
• Is Part Of: Asia-Pacific journal of financial studies. Volume 50:Number 2(2021)
• Page Start: 238
• Page End: 264
• Publication Date: 2021-04-22
• Subjects: Banking -- Non‐interest Income -- Earnings Quality -- Discretionary Loan Loss Provisions; Pacific Area -- Economic conditions -- Periodicals; Finance -- Asia -- Periodicals; Finance -- Pacific Area -- Periodicals; Asia -- Economic conditions -- Periodicals; 332.09505
• DOI: 10.1111/ajfs.12330
• Languages: English
• ISSNs: 2041-9945

Abstract

Abstract: We examine whether and how non‐traditional banking activities affect the quality of banks' financial reporting. We find that a bank's ratio of non‐interest income (derived from non‐traditional activities) to total operating income is positively and significantly associated with the magnitude of discretionary loan loss provisions, our proxy for financial reporting quality.