Short-term financing, e.g., asset-backed commercial paper (ABCP) or repurchase agreements (repo), was prevalent prior to the 2007-2008 financial crises. Banks funded by short-term debts, however, are exposed to rollover risk as the banks are unable to raise sufficient funds to finance their...

Restrictive home-country regulations lead to degraded transparency abroad and exert negative externalities on the global banking system. Our finding that the negative externalities primarily exist in countries with weak supervisory power highlights the importance of bank supervision when...

Although firm-initiated clawbacks reduce accounting manipulation, they also induce managers to engage in sub-optimal activities (e.g., reduce R&D) to achieve earnings targets. To assess the effectiveness of clawback provisions, we examine their impact from debtholders' point of view. We find...

Motivated by international business research on institutional arbitrage and headquarters-subsidiary relationships, we examine the effect of regulatory distance on multinational banks’ (MNBs) reporting transparency abroad. Using an international sample of foreign subsidiary banks in 46 host...