Template-Type: ReDIF-Article 1.0 Author-Name: Adrian F. Rossignolo Author-X-Name-First: Adrian F. Author-X-Name-Last: Rossignolo Title: Basel 3.5 vs. Basel III: a radical overhaul of the capital requirements pillar. The case of commodity exposures Abstract: Following the implementation of Basel III, the Basel committee has embarked on a thorough review of its market risk directives and enacted new proposals generically called Basel 3.5. They involve a radical transformation of the standardised approach (SA) into a risk-sensitive method and a complete overhaul of the internal models approach (IMA) through the replacement of VaR for ES, amid stringent validation standards. The study analyses Basel's recent regulations for commodities exposures, finding a substantial rise in capital levels for SA and IMA and the relatively disadvantageous position in which IMA is placed, arising from the higher SA's capital requirements and the tougher evaluation criteria only attained by schemes featuring extremes theory. This, in turn, provokes accuracy disincentives and unnecessary immobilisation of funds. Consequently, the paper introduces a straightforward solution designed to level SA and IMA and provide substantial protection against huge market slumps with more reasonable capital levels and reduced implied costs. Journal: Int. J. of Banking, Accounting and Finance Pages: 1-34 Issue: 1 Volume: 11 Year: 2020 Keywords: Basel 3.5; Basel III; standardised approach; internal models approach; IMA; expected shortfall; extreme value theory; EVT. File-URL: http://www.inderscience.com/link.php?id=104479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:1:p:1-34 Template-Type: ReDIF-Article 1.0 Author-Name: Charlotte Ostergaard Author-X-Name-First: Charlotte Author-X-Name-Last: Ostergaard Author-Name: Amir Sasson Author-X-Name-First: Amir Author-X-Name-Last: Sasson Author-Name: Bent E. Sorensen Author-X-Name-First: Bent E. Author-X-Name-Last: Sorensen Title: Cash flow sensitivities and bank-finance shocks in non-listed firms Abstract: We study how small firms manage cash flows by estimating cash flow sensitivities for all sources and uses of cash. Our data are Norwegian non-listed firms which can be matched to the banks they borrow from. Firms with low cash holdings mainly use external finance to offset cash flow fluctuations over the cycle, whereas firms with high cash holdings rely mainly on internal finance. Estimating how cash flow sensitivities change with exogenous bank shocks, we find that the cyclicality of cash-poor firms' investment is amplified because they do not substitute internal for external finance. Our results imply that for small firms, the transmission of financial shocks to the real economy is closely tied to their accumulation of cash. Journal: Int. J. of Banking, Accounting and Finance Pages: 35-70 Issue: 1 Volume: 11 Year: 2020 Keywords: cash holdings; cash management; small firms; cash flow sensitivity; bank lending channel. File-URL: http://www.inderscience.com/link.php?id=104483 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:1:p:35-70 Template-Type: ReDIF-Article 1.0 Author-Name: Elisabete F. Simões Vieira Author-X-Name-First: Elisabete F. Simões Author-X-Name-Last: Vieira Title: The earnings announcements consequences in public family firms Abstract: This paper investigates market reaction to earnings announcements made by public family firms, to see whether these announcements affect a firm's returns, liquidity or cost of capital. We apply an event study and panel data approach to a sample of Portuguese firms listed between 2000 and 2013. Overall, we find no support for the earnings-signalling hypothesis. Firm size and the fact that a Big-4 company audits a firm contribute positively to the firm performance. The results show no significant relationship between earnings changes and firm liquidity or the weighted average cost of capital and, as such, do not support the pecking order theory. Finally, we find no significant differences between family and non-family firms as regards performance, liquidity and cost of capital. This study is of interest to scholars and practitioners in the field of finance, particularly those focusing on the information content of earnings announcements and the differences between the effects of earnings announcements made by listed family and non-family firms. Journal: Int. J. of Banking, Accounting and Finance Pages: 71-94 Issue: 1 Volume: 11 Year: 2020 Keywords: earnings announcements; return; liquidity; cost of capital; family firms. File-URL: http://www.inderscience.com/link.php?id=104484 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:1:p:71-94 Template-Type: ReDIF-Article 1.0 Author-Name: Gerasimos G. Rompotis Author-X-Name-First: Gerasimos G. Author-X-Name-Last: Rompotis Title: Actively versus passively managed equity ETFs: new empirical insights Abstract: This study employs a sample of 37 active and passive ETF pairs, which invest in common stocks, to assess their performance and risk up to December 31, 2016. Several return metrics are computed such as absolute, buy-and-hold returns and risk-adjusted returns. Moreover, a cross-sectional regression analysis is applied, which seeks to identify the factors that may influence the performance of ETFs. Finally, the ability of managers to time the market is examined. The findings are similar to those in the previous literature. In particular, the active ETFs are inferior to passive ETFs in terms of performance and overall risk also failing to deliver any material excess-market return. In addition, the active ETF managers are lacking in superior market timing skills. Finally, the performance of ETFs is found to be related to expenses and volume in a negative fashion while a positive relation is revealed between performance and the assets invested in ETFs. Journal: Int. J. of Banking, Accounting and Finance Pages: 95-135 Issue: 1 Volume: 11 Year: 2020 Keywords: exchange traded funds; ETFs; active management; performance; market timing; expenses. File-URL: http://www.inderscience.com/link.php?id=104486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:1:p:95-135 Template-Type: ReDIF-Article 1.0 Author-Name: Panagiotis Andrikopoulos Author-X-Name-First: Panagiotis Author-X-Name-Last: Andrikopoulos Author-Name: Osama El-Ansary Author-X-Name-First: Osama Author-X-Name-Last: El-Ansary Author-Name: Walid Ibrahim Hassan Author-X-Name-First: Walid Ibrahim Author-X-Name-Last: Hassan Title: The propensity to pay dividends: empirical evidence from the MENA region Abstract: This paper investigates the relation between stock market sentiment and firms' propensity to pay dividends in the MENA region for the period 2000–2015. Using conventional determinants of cash distributions as control variables, our results show that the tendency to pay dividends is negatively related to the aggregate investors' sentiment but positively related to the dividend premium. Unlike prior literature, we report no association between firms' dividend policy and issues of stock market liquidity. Overall, we suggest that corporate payout policies in the case of the MENA region can best be explained by the dividend catering hypothesis. Journal: Int. J. of Banking, Accounting and Finance Pages: 136-171 Issue: 1 Volume: 11 Year: 2020 Keywords: dividends; payout policy; sentiment index; market volatility. File-URL: http://www.inderscience.com/link.php?id=104487 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:1:p:136-171 Template-Type: ReDIF-Article 1.0 Author-Name: Ishmael Tingbani Author-X-Name-First: Ishmael Author-X-Name-Last: Tingbani Author-Name: Venancio Tauringana Author-X-Name-First: Venancio Author-X-Name-Last: Tauringana Author-Name: Isaac Sakyi Damoah Author-X-Name-First: Isaac Sakyi Author-X-Name-Last: Damoah Author-Name: Widin Bongasu Sha'ven Author-X-Name-First: Widin Bongasu Author-X-Name-Last: Sha'ven Title: Working capital management and financial performance of UK listed firms: a contingency approach Abstract: Existing empirical research findings generally suggest that working capital management (WCM) affects and the firms' financial performance. This paper adopts contingency theory framework to investigate how the relationship between WCM and financial performance is affected by the firms' environment, resources and management capability. Our sample consist of an unbalanced panel of 802 firms listed on the London Stock Exchange (LSE) from 2004 to 2014 on which a dynamic panel data analysis was performed using a series of interactive models to estimate the relationship. The findings suggest that the impact of WCM on financial performance changes to reflect number contingency variables such as environmental, resources and management capabilities of the firm. These findings are significant because they demonstrate for the first time how the firms' ability to enhance performance through investment in working capital is influenced by contingent factors such as environmental, resource and management capabilities of the firm. Our results are also important as they show that contingency theory helps to provide an understanding on the conditions under which investment in working capital can be an effective tool in enhancing financial performance and the relevant contingencies. Journal: Int. J. of Banking, Accounting and Finance Pages: 173-201 Issue: 2 Volume: 11 Year: 2020 Keywords: working capital management; WCM; financial performance; contingency approach; interactive models. File-URL: http://www.inderscience.com/link.php?id=106708 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:2:p:173-201 Template-Type: ReDIF-Article 1.0 Author-Name: Júlio Lobão Author-X-Name-First: Júlio Author-X-Name-Last: Lobão Author-Name: Luís Pacheco Author-X-Name-First: Luís Author-X-Name-Last: Pacheco Author-Name: Tiago Lajas Author-X-Name-First: Tiago Author-X-Name-Last: Lajas Title: The dividend puzzle: testing the signalling hypothesis in a European context Abstract: Dividend policy continues to puzzle researchers in the discipline of finance. In this paper we test the signalling effects of the dividend payout for a set of European firms that had sustained earnings growth for a minimum period of five years with a decline in the last year. To the best of our knowledge this is the first paper to run and compare the results of several different models including the recently created simultaneous-equation model in its linear and nonlinear forms alongside a simple OLS-based estimation. Our results show that managers change dividends to signal equity-scaled earnings prospects instead of asset-scaled earnings. We also find evidence that managers change dividends for signalling previous earnings changes and may distribute dividends to reduce agency costs. These findings suggest that managers identify shareholders as the accepters of dividends and the most direct targets to signalling information. Journal: Int. J. of Banking, Accounting and Finance Pages: 202-226 Issue: 2 Volume: 11 Year: 2020 Keywords: dividends; signalling hypothesis; behavioural finance; European firms; simultaneous-equation model. File-URL: http://www.inderscience.com/link.php?id=106709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:2:p:202-226 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Hasan Author-X-Name-First: Mohammad Author-X-Name-Last: Hasan Author-Name: Taufiq Choudhry Author-X-Name-First: Taufiq Author-X-Name-Last: Choudhry Author-Name: Yuanyuan Zhang Author-X-Name-First: Yuanyuan Author-X-Name-Last: Zhang Title: An econometric investigation of hedging performance of stock index futures in Korea: dynamic versus static hedging Abstract: Employing daily data of stock index and stock index futures, this paper empirically investigates the hedging effectiveness of time-varying hedge ratios of emerging futures markets using South Korea as a case. This paper employs eight variants of GARCH models to estimate the hedge ratios along with the conventional methods, and compares the hedging effectiveness of these estimated hedge ratios across model specifications using both within-sample and out-of-sample forecasting performances. In contrast to recent research findings, hedging performance based on a conventional OLS method outperforms the GARCH class models. Journal: Int. J. of Banking, Accounting and Finance Pages: 227-253 Issue: 2 Volume: 11 Year: 2020 Keywords: stock index futures; time-varying hedge ratio; GARCH model; hedging effectiveness; Korea. File-URL: http://www.inderscience.com/link.php?id=106712 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:2:p:227-253 Template-Type: ReDIF-Article 1.0 Author-Name: Surraya Rowe Author-X-Name-First: Surraya Author-X-Name-Last: Rowe Title: Split credit ratings of banks in times of crisis Abstract: This paper analyses whether opacity of bank creditworthiness increases during crisis periods and if the conservativeness of CRAs changes through business cycles. Univariate and multivariate methodologies are used: data from Moody's and S%P on credit ratings and watch status for 133 commercial banks across 17 developed countries from 2007 to 2015 is employed. The univariate analysis is a unique technique that provides a new perspective to assess whether splits between CRAs are defined as permanent or temporary. The evidence demonstrates that Moody's and S%P frequently disagree. S%P is shown to be the more conservative CRA overall, however, the extent to which Moody's issues higher ratings decreases over time until it becomes the more conservative CRA. The paper is the first of its kind to establish that the conservativeness of Moody's and S%P changes throughout business cycles, which should impact on the strategic decision making of investors. Journal: Int. J. of Banking, Accounting and Finance Pages: 254-280 Issue: 2 Volume: 11 Year: 2020 Keywords: credit ratings; credit rating agencies; split ratings; watchlist; banks; financial crises; sub-prime crisis; ambiguity; opacity; creditworthiness; time-weighted splits; Moody's; S%P; times of crisis; European sovereign crisis. File-URL: http://www.inderscience.com/link.php?id=106716 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:2:p:254-280 Template-Type: ReDIF-Article 1.0 Author-Name: Ning Ren Author-X-Name-First: Ning Author-X-Name-Last: Ren Author-Name: Yun Zhu Author-X-Name-First: Yun Author-X-Name-Last: Zhu Title: Going-concern opinions and corporate governance Abstract: This paper looks into the issuance of auditor's going-concern opinions and investigates how it triggers subsequent changes in corporate governance, specifically, the corporate control, executive compensation and management turnover. Using a difference-in-difference approach with the exogenous shock of Auditing Standard No. 5 (AS5) in 2007, we find that going-concern opinion leads to the decrease in blockholder ownership and institutional ownership, the reduction in CEO's cash compensation and total compensation, and the increase in the turnovers of top executives and auditors, indicating strong monitoring function of the auditors. Journal: Int. J. of Banking, Accounting and Finance Pages: 281-302 Issue: 2 Volume: 11 Year: 2020 Keywords: going-concern opinion; corporate governance; blockholder ownership; institutional ownership; CEO compensation; CEO turnover. File-URL: http://www.inderscience.com/link.php?id=106717 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:2:p:281-302 Template-Type: ReDIF-Article 1.0 Author-Name: Claudia Arena Author-X-Name-First: Claudia Author-X-Name-Last: Arena Author-Name: Yanira Petrides Author-X-Name-First: Yanira Author-X-Name-Last: Petrides Author-Name: Petros Vourvachis Author-X-Name-First: Petros Author-X-Name-Last: Vourvachis Title: Determinants of CSR disclosure in Mexico Abstract: This paper investigates corporate social (and environmental) responsibility (CSR) disclosure practices in Mexico. By analysing a sample of Mexican companies in 2010, it utilises a detailed manual content analysis and identifies corporate-governance-related determinants of CSR disclosure. The study shows a general association between the governance variables and both the content and the semantic properties of CSR information published by Mexican companies. Although an increased international influence on CSR disclosure is noted, the study reveals the symbolic role of CSR committees and the negative influence of foreign ownership on community disclosure, suggesting that improvements in business engagement with stakeholders are needed for CSR to be instrumental in business conduct. Journal: Int. J. of Banking, Accounting and Finance Pages: 303-341 Issue: 3 Volume: 11 Year: 2020 Keywords: corporate social responsibility; CSR; CSR disclosure; disclosure determinants; Mexico; corporate governance; legitimacy theory; stakeholder engagement; content analysis. File-URL: http://www.inderscience.com/link.php?id=107943 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:3:p:303-341 Template-Type: ReDIF-Article 1.0 Author-Name: Jie Michael Guo Author-X-Name-First: Jie Michael Author-X-Name-Last: Guo Author-Name: Qian He Author-X-Name-First: Qian Author-X-Name-Last: He Author-Name: Jiayuan Xin Author-X-Name-First: Jiayuan Author-X-Name-Last: Xin Author-Name: Jia Liu Author-X-Name-First: Jia Author-X-Name-Last: Liu Title: Managerial overconfidence and M%A performance: evidence from China Abstract: We examine the extent to which managerial overconfidence creates value to acquirers in successful M%As undertaken by Chinese listed firms in the period of 2006-2012. The empirical results show that Chinese acquirers gain value in both the short-run and the long-run after the M%A announcement. Our study provides new evidence that the market responds favourably to M%A deals undertaken by acquirers with more managerial overconfidence in both the short-run and the long-run. Our multivariate analyses, however, show that managerial overconfidence has a minimal role in explaining the stock price movement. In addition, we find that firm size is an important determinant for the relationship between overconfidence and market reaction to merger deals. Taken together, we conclude that managerial overconfidence has little effect in driving merger and acquisition deals in China. Journal: Int. J. of Banking, Accounting and Finance Pages: 342-360 Issue: 3 Volume: 11 Year: 2020 Keywords: mergers and acquisitions; M%As; market performance; managerial overconfidence; Chinese market; China. File-URL: http://www.inderscience.com/link.php?id=107946 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:3:p:342-360 Template-Type: ReDIF-Article 1.0 Author-Name: Francesca Battaglia Author-X-Name-First: Francesca Author-X-Name-Last: Battaglia Author-Name: Lucia Leonelli Author-X-Name-First: Lucia Author-X-Name-Last: Leonelli Author-Name: Ornella Ricci Author-X-Name-First: Ornella Author-X-Name-Last: Ricci Title: Market reaction to the European antitrust investigations in the payment card industry Abstract: This paper aims to analyse the stock price reaction of European banks involved in antitrust authority interventions regarding the payment card business. The main objective is to assess whether market discipline is effective and able to complement regulation (Berger et al., 2000) despite the opacity of the business (Morgan, 2002). To this end, we collect all interventions made by both domestic antitrust authorities and by the European Commission to investigate and/or sanction anticompetitive behaviour in the payment card sector over the period 2004-2015. This results in a sample of 24 events, involving 135 listed banks operating in the EU-27 area. We run an event study analysis based on a traditional market model in order to estimate cumulated abnormal returns (CARs), considering both the date when the formal investigation is open and the date when the outcome of the procedure is communicated to the market. Our findings provide weak evidence in favour of the effectiveness of market discipline, with a significant (negative) market reaction only for investigations involving a small number of well-identified banking institutions, while procedures involving large banking associations or payment networks do not generate any relevant reaction. Journal: Int. J. of Banking, Accounting and Finance Pages: 361-384 Issue: 3 Volume: 11 Year: 2020 Keywords: payments market; payment cards; interchange fees; merchant; cardholders; event study; fines; antitrust authority. File-URL: http://www.inderscience.com/link.php?id=107949 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:3:p:361-384 Template-Type: ReDIF-Article 1.0 Author-Name: Matthias Nnadi Author-X-Name-First: Matthias Author-X-Name-Last: Nnadi Author-Name: Evgeniia Volokitina Author-X-Name-First: Evgeniia Author-X-Name-Last: Volokitina Author-Name: Daniel Aghanya Author-X-Name-First: Daniel Author-X-Name-Last: Aghanya Title: The effect of government involvement and payment method on merger and acquisition performance: the case of China Abstract: This paper applies a sample of 842 to investigate the effect of government involvement and payment methods on merger and acquisition of Chinese listed firms for the period 1993-2015. The study employs market model as benchmark to estimate expected returns for several event windows. We find that Chinese acquirer shareholders experience higher returns from the acquisitions in firms with no government involvements than those where government is involved. Our study demonstrates that stock-financed acquisitions maximise the wealth gains of shareholders than cash-backed acquisitions. Our finding further shows that using cash to finance government backed acquisitions yields extra wealth for investors on the announcement date whilst the market experience higher abnormal returns when stocks are used to finance the acquisition of privately held targets. The result of this paper has significant policy implications for both M%A financing decisions and government involvements in merger deals. Journal: Int. J. of Banking, Accounting and Finance Pages: 385-410 Issue: 3 Volume: 11 Year: 2020 Keywords: mergers; performance; acquisition; Chinese; returns; government; China. File-URL: http://www.inderscience.com/link.php?id=107951 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:3:p:385-410 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio Gledson De Carvalho Author-X-Name-First: Antonio Gledson De Author-X-Name-Last: Carvalho Author-Name: João Amaro De Matos Author-X-Name-First: João Amaro De Author-X-Name-Last: Matos Author-Name: Douglas Beserra Pinheiro Author-X-Name-First: Douglas Beserra Author-X-Name-Last: Pinheiro Title: Determinants of price stabilisation in initial public offerings Abstract: We model price stabilisation in IPOs as a sequential decision: syndicate short position (SSP); occurrence of aftermarket short covering (ASC); and intensity of the ASC. We provide empirical evidence that corroborates its predictions. Our analysis is possible because in Brazil underwriters must disclose information on price stabilisation. We innovate by simultaneously modelling the three different decisions. Our model predicts, and empirical results confirm, that the three decisions have distinct determinants: ex-ante demand is the only factor affecting the SSP, and ASC and its intensity increases with the riskiness of the issue, the ex-ante demand, and the underwriter's reputation. Our model also innovates by considering the underwriter's reputation. Journal: Int. J. of Banking, Accounting and Finance Pages: 411-433 Issue: 3 Volume: 11 Year: 2020 Keywords: IPO; price stabilisation; aftermarket short covering; greenshoe. File-URL: http://www.inderscience.com/link.php?id=107959 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:3:p:411-433 Template-Type: ReDIF-Article 1.0 Author-Name: Joseph Mensah Onumah Author-X-Name-First: Joseph Mensah Author-X-Name-Last: Onumah Author-Name: King Carl Tornam Duho Author-X-Name-First: King Carl Tornam Author-X-Name-Last: Duho Title: Impact of intellectual capital on bank efficiency in emerging markets: evidence from Ghana Abstract: Various researchers have examined the relationship between intellectual capital (IC) and performance of banks. Yet, only few studies have examined the nexus between IC and bank efficiency especially in Africa. Using the VAIC™ model of Pulic (2000) [and its additive components human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE)] to measure IC and data envelopment analysis to estimate efficiency scores, the current study used Ghanaian data of 32 banks from 2000 to 2015 to examine the nexus. The study found that risk-adjusted efficiency scores are higher than non-risk adjusted scores. There is evidence suggesting that IC instigates efficiency in banks. This is borne largely from HCE suggesting the prevalence of the human capital theory. The results of the impact of SCE and CEE are insignificant except for the significant positive impact of CEE on profit efficiency. Stock exchange listing increases efficiency scores especially risk-adjusted efficiency. Other exogenous variables such as size, leverage and concentration were controlled for with the results discussed into detail. The results have implications for bank regulation, bank management and future research. Journal: Int. J. of Banking, Accounting and Finance Pages: 435-460 Issue: 4 Volume: 11 Year: 2020 Keywords: intellectual capital; human capital; VAIC™ banking accounting finance; data envelopment analysis; DEA; technical efficiency; cost efficiency; profit efficiency; emerging technologies; isotonicity; credit risk; integrated reporting; Africa; Ghana. File-URL: http://www.inderscience.com/link.php?id=110303 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:4:p:435-460 Template-Type: ReDIF-Article 1.0 Author-Name: Elaine Conway Author-X-Name-First: Elaine Author-X-Name-Last: Conway Title: Did removing prudence from the conceptual framework impact accounting conservatism? Abstract: The International Accounting Standards Board (IASB) removed explicit reference to the concept of prudence within the conceptual framework (CF) with effect from September 2010. This paper examines whether practitioner concerns that the removal of prudence might lead to a decrease in accounting conservatism and an increase in earnings management or overstated results were justified. It takes a sample of firms from the UK FTSE350, Australian ASX 300 and the South African JALSH (Johannesburg All Share) and evaluates three popular measures of accounting conservatism over the fourteen-year period of 2003-2016 (seven years pre and post the removal of prudence from the CF). The measures of accounting conservatism used were asymmetric timeliness of earnings, market-to-book ratio and total/non-operating accruals. Using all three measures, there was no evidence that the level of accounting conservatism has reduced during the period following the removal of prudence in the CF in those countries using IFRS. Despite this, the debate around prudence has continued and the IASB has since decided to reinstate it in the 2018 revised CF, effective 1 January 2020. Journal: Int. J. of Banking, Accounting and Finance Pages: 545-587 Issue: 4 Volume: 11 Year: 2020 Keywords: conceptual framework; prudence; accounting conservatism; conditional conservatism; unconditional conservatism; IFRS. File-URL: http://www.inderscience.com/link.php?id=110309 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:4:p:545-587 Template-Type: ReDIF-Article 1.0 Author-Name: Amit Ghosh Author-X-Name-First: Amit Author-X-Name-Last: Ghosh Title: Bank diversification and entrepreneurship: evidence across US states Abstract: Although a sizeable literature has examined the impact of income diversification on risk and return, the implication of banks diversification on entrepreneurial activities has not yet been studied. Using state-level data for the US spanning the period 1977-2014, the present study examines the impact of banks asset, income and funding diversification on different facets of entrepreneurial activities. We find banks asset and funding diversification to promote net business formation and net job creation. Additionally, bank profitability, deposit growth, as well as state-level personal income and housing price growth foster entrepreneurship. Journal: Int. J. of Banking, Accounting and Finance Pages: 495-520 Issue: 4 Volume: 11 Year: 2020 Keywords: entrepreneurship; bank diversification; Herfindahl-Hirshman index; net business formation; net job creation; state-level analysis; panel estimations; USA. File-URL: http://www.inderscience.com/link.php?id=110310 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:4:p:495-520 Template-Type: ReDIF-Article 1.0 Author-Name: Yaseen Ghulam Author-X-Name-First: Yaseen Author-X-Name-Last: Ghulam Title: Assessing the long-term impact of reforms and privatisation on the banking industry of Pakistan Abstract: This study examines the long-term impact of privatisation and broader reforms of the banking industry in Pakistan over a quarter of a century. We conclude that following the reforms and changes of ownership, as expected, banking firms made an adjustment to their input usage by switching from labour saving to labour using after the reforms, but vice versa for purchased funds. Simple descriptive statistics of the productivity estimates reveal that banking firms did not experience any improvement in productivity (medium-sized and private firms in particular). Operating nationwide has a clear advantage in terms of productivity growth compared, with operating only in urban centres with a limited number of branches. More importantly, when the productivity estimates are regressed on a number of explanatory variables to control for bank-specific factors and the economic, financial, industrial and political environment, we conclude that the reforms and changes of ownership have indeed made privatised banking firms in particular more productive. Journal: Int. J. of Banking, Accounting and Finance Pages: 461-494 Issue: 4 Volume: 11 Year: 2020 Keywords: total factor productivity; TFP; reforms; privatisation; technological progress; input bias; banking industry; Pakistan. File-URL: http://www.inderscience.com/link.php?id=110311 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:4:p:461-494 Template-Type: ReDIF-Article 1.0 Author-Name: Rolf Färe Author-X-Name-First: Rolf Author-X-Name-Last: Färe Author-Name: Hirofumi Fukuyama Author-X-Name-First: Hirofumi Author-X-Name-Last: Fukuyama Author-Name: William L. Weber Author-X-Name-First: William L. Author-X-Name-Last: Weber Title: Profit change, Bennet-Bowley productivity and price change indicators Abstract: This paper decomposes a normalised Bennet-Bowley (BB) productivity indicator into indicators of profit change and price change. An advantage of the method is that each indicator is calculated by substituting observed prices and quantities of inputs and outputs into a simple accounting formula. We extend Walden et al. (2017) and aggregate the indicators and account for the effects of new entrants, exits and continuing firms on profit change. We calculate each indicator for Japanese city banks, regional banks and Japan Post Bank during 2010-2016. Banking experiences productivity growth during 2010-2016 and profit change is also positive except during 2010-2011 and 2013-2014, when adverse price changes more than offset productivity growth. Regional banks make a greater contribution to increases in profits and productivity than city banks. Japan Post Bank experiences productivity decline throughout the period new entrants reduce industry profits, while exiting banks increase industry profits. Decreases in non-performing loans during the period contributed to increased profitability and productivity. Journal: Int. J. of Banking, Accounting and Finance Pages: 521-544 Issue: 4 Volume: 11 Year: 2020 Keywords: Bennet-Bowley productivity; profit change; DEA; Japanese banks. File-URL: http://www.inderscience.com/link.php?id=110312 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:injbaf:v:11:y:2020:i:4:p:521-544