This paper analyzes security returns of bank holding companies and insurance companies during periods surrounding the adoption of SFAS 115. We find that bank share prices were negatively affected by the examined events but find little share price reaction for insurance companies. Our evidence...

This paper examines whether managerial discretion over loan loss accruals, accounting related transactions such as sales of investment securities, and financing transactions are used to manage capital, earnings or taxes. We model discretion over these decisions using a system of five equations...