in 2008 affects the market valuation of discretionary loan loss provisions (DLLPs). Although Basel II lowers the …

beat earnings benchmarks, we find that abnormal ALL is unrelated to next period's loss avoidance and just meeting or … discretion as a means to build a cushion against future credit losses as they transition from the incurred loss model to the … expected loss model for loan loss accounting …

This study uses experimental economic markets to investigate the impact of risk and the potential for loss on managers … preferences. We predict risk, the potential for loss, and their interaction will each decrease manager demand for high audit …; specifically, increased risk, the potential for loss, and to a lesser extent their interaction, significantly reduce managers …