Accounting Seminar: Professor Charles Shi

22 November, 2018 - 10:30 to 12:00
Colin Clark Building (39), Room 103

Peer Effects in Bank Loan Accounting

We show that peer banks play a significant role in determining a bank’s accounting for loan loss provisions. The peer influence is more pronounced for banks with less capable managers and when banks are under greater regulatory scrutiny. Channel tests indicate that peer effects work through observational learning (i.e., learning from the wisdom of the crowd). Finally, we provide evidence suggesting that peer effects improve bank financial reporting quality.

Professor Charles Shi

For more information on Professor Charles Shi, please see National University of Singapore staff profile.