The opportunity of building up visible “Reserves for General Banking Risks” by the bank management represents a peculiarity in the German financial accounting framework for banks. We investigate German banks' motives for the creation and usage of these reserves and assess their role in...

Existing research documents that incoming CEOs in non-financial firms tend to take an “earnings bath”. They reduce their first year’s profits through discretionary expenses, blame the “bad outcome” on their predecessors, lower the performance benchmark, and save income for subsequent...

Section 340f of the German Commercial Code allows banks to provision against the special risks inherent to the banking business by building hidden reserves. Beyond risk provisioning, these reserves are implicitly accepted as an earnings management device. By analyzing financial statements of...

Abstract We investigate whether small business clients could use revocable credit lines, firstly, in their cash management and, secondly, as a funding source. Since the medium-size bank that provided our unique sample has the right to call these lines and charges considerably high rates for...

Zusammenfassung Der Beitrag erörtert die Folgen der Anwendung des IAS 32 in Kreditgenossenschaften. In diesem deutschen Bankensektor kann es hierdurch zu einem Verlust erheblicher Eigenkapitalbestandteile und damit auch der aufsichtsrechtlichen Eigenmittel kommen. Die Inkonsistenz des IAS 32 in...

Written in celebration of its 350th anniversary in 2018, this book details the history of the central bank of Sweden, Sveriges Riksbank, as presented by Klas Fregert. It relates the bank's history to the development of other major central banks around the world. Chapters are written by some of...