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time-series variation in these mandates, we investigate the effects of mandated auditor reporting on bank risk. We find … evidence that auditor reporting reduces bank riskiness, as measured by counterparty risk, nonperforming loans, and credit … spreads. We also observe a decline in risk-weighted assets, which suggests that mandated auditor reporting enhances the …
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This paper evaluates the impact of the March 2020 European Central Bank recommendation that banks do not pay dividends or buy back shares on their market values. It documents a causal negative impact on bank share prices of around 7% during the two weeks following its announcement. The...
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