This article examines the consequences of accounting policy choices for individual banks' downside tail risk, for the codependence of such risk among banks, and for regulatory forbearance, or the decision by a regulator not to intervene. The author synthesizes recent research that provides...

An important unresolved issue is the extent to which bank transparency promotes or undermines bank stability. Conflicting views on transparency create a demand for empirical research that can provide insights into the nature of transparency and when, where and how it positively or negatively...

Using a sample of A-share listed firms in China during the 2003-2012 period, this paper investigates the effect of accounting conservatism on trade credit, taking changes in monetary policy into account. We find that corporations with higher accounting conservatism obtain more trade credit and...

Using a sample of A-share listed firms in China during the 2003–2012 period, this paper investigates the effect of accounting conservatism on trade credit, taking changes in monetary policy into account. We find that corporations with higher accounting conservatism obtain more trade credit and...

We examine how firms' accounting quality affects their reaction to monetary policy. The balance sheet channel of monetary policy predicts that the quality of firms' accounting reports plays a role in transmitting monetary policy by affecting information asymmetries between firms and capital...

We study whether management guidance affects how stock prices respond to monetary policy shocks in the Eurozone. Using intraday data to measure European Central Bank’s interest rate surprises, we show that issuing earnings guidance prior to the announcement attenuates the stock reaction for...

The level and trend in cash use in a country will influence the demand for central bank digital currency (CBDC). While access to digital currency will be more convenient than traveling to an ATM, it only makes CBDC like a bank debit card-not better. Demand for digital currency will thus be weak...

This study examines the relationship between accounting credibility and firms' ability to fund their investments. Theory suggests that credible reporting resulting from external audits enables firms to attract external funds needed for their investments. The tests exploit monetary policy...

We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC and bank deposits according to their preferences over anonymity and security; and where network effects make the convenience of payment instruments dependent on the number of...

This paper examines key considerations around central bank digital currency (CBDC) foruse by the general public, based on a comprehensive review of recent research, centralbank experiments, and ongoing discussions among stakeholders. It looks at the reasonswhy central banks are exploring retail...