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Non‐traditional Banking Activities and Bank Financial Reporting Quality
Author(s) -
Guo Mengyang,
Jin Justin,
Liu Yi,
Nainar S. M. Khalid
Publication year - 2021
Publication title -
asia‐pacific journal of financial studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.375
H-Index - 15
eISSN - 2041-6156
pISSN - 2041-9945
DOI - 10.1111/ajfs.12330
Subject(s) - proxy (statistics) , business , loan , quality (philosophy) , financial system , affect (linguistics) , finance , accounting , philosophy , linguistics , epistemology , machine learning , computer science
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.