Competition and the use of discretion in financial reporting
Abstract/Contents
- Abstract
- The purpose of this dissertation is to explore the use of discretion in financial reporting when firms are faced with an increase in the threat of competition. I use state-level changes in branching regulation under the Interstate Banking and Branching Efficiency Act (IBBEA) of 1994 to obtain variation in the threat of competition. Regulation was passed by the state legislature or announced in the press one to two years before it became effective, allowing for separation of the threat of competition from an actual increase in competition. Findings suggest that banks increase their loss provisions and appear less profitable under the threat of competition. Additional tests indicate that both managers' and regulators' use of discretion in financial reporting may be driving the results. Survey based evidence supports the premise that banks prefer to locate in markets where incumbents have high profitability and low credit losses, and that banks use competitors' financial statements in analyzing their competition.
Description
| Type of resource | text |
|---|---|
| Form | electronic; electronic resource; remote |
| Extent | 1 online resource. |
| Publication date | 2016 |
| Issuance | monographic |
| Language | English |
Creators/Contributors
| Associated with | Tomy, Rimmy Elizabeth | |
|---|---|---|
| Associated with | Stanford University, Graduate School of Business. | |
| Primary advisor | McNichols, Maureen, 1953- | |
| Thesis advisor | McNichols, Maureen, 1953- | |
| Thesis advisor | Larcker, David F | |
| Thesis advisor | Piotroski, Joseph D. (Joseph David) | |
| Advisor | Larcker, David F | |
| Advisor | Piotroski, Joseph D. (Joseph David) |
Subjects
| Genre | Theses |
|---|
Bibliographic information
| Statement of responsibility | Rimmy Elizabeth Tomy. |
|---|---|
| Note | Submitted to the Graduate School of Business. |
| Thesis | Thesis (Ph.D.)--Stanford University, 2016. |
| Location | electronic resource |
Access conditions
- Copyright
- © 2016 by Rimmy Elizabeth Tomy
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
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