No Cover Image

Journal article 84 views

Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167

Wei Song, Suntina Sun Orcid Logo, Qingjing Zhang, Zhuang Zhang

Review of Quantitative Finance and Accounting

Swansea University Author: Suntina Sun Orcid Logo

Full text not available from this repository: check for access using links below.

Check full text

Abstract

We examine whether and how changes in bank accounting standards influence borrowers’ earnings management activities. Exploiting the implementation of FAS 166/167, which required banks to consolidate previously off-balance-sheet securitized assets, we find that borrowing firms increase their use of a...

Full description

Published in: Review of Quantitative Finance and Accounting
ISSN: 0924-865X 1573-7179
Published: Springer Nature 2026
Online Access: Check full text

URI: https://cronfa.swan.ac.uk/Record/cronfa71893
first_indexed 2026-05-13T16:01:35Z
last_indexed 2026-06-19T05:50:10Z
id cronfa71893
recordtype SURis
fullrecord <?xml version="1.0"?><rfc1807><datestamp>2026-06-18T21:40:32.1938332</datestamp><bib-version>v2</bib-version><id>71893</id><entry>2026-05-13</entry><title>Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167</title><swanseaauthors><author><sid>2e8f85688626fa70d0386d0ccba4a30c</sid><ORCID>0000-0002-5056-9639</ORCID><firstname>Suntina</firstname><surname>Sun</surname><name>Suntina Sun</name><active>true</active><ethesisStudent>false</ethesisStudent></author></swanseaauthors><date>2026-05-13</date><deptcode>CBAE</deptcode><abstract>We examine whether and how changes in bank accounting standards influence borrowers&#x2019; earnings management activities. Exploiting the implementation of FAS 166/167, which required banks to consolidate previously off-balance-sheet securitized assets, we find that borrowing firms increase their use of accrual-based earnings management following the reform. This effect is notably stronger among borrowers with greater financing needs and higher information opacity. Overall, our study documents a previously underexplored spillover effect of bank accounting reforms on borrowers&#x2019; accounting practices and underscores the importance of considering possible borrower-level responses when evaluating future accounting reforms in the banking sector.</abstract><type>Journal Article</type><journal>Review of Quantitative Finance and Accounting</journal><volume/><journalNumber/><paginationStart/><paginationEnd/><publisher>Springer Nature</publisher><placeOfPublication/><isbnPrint/><isbnElectronic/><issnPrint>0924-865X</issnPrint><issnElectronic>1573-7179</issnElectronic><keywords/><publishedDay>18</publishedDay><publishedMonth>6</publishedMonth><publishedYear>2026</publishedYear><publishedDate>2026-06-18</publishedDate><doi/><url>https://doi.org/10.1007/s11156-026-01532-7</url><notes>In press</notes><college>COLLEGE NANME</college><department>Management School</department><CollegeCode>COLLEGE CODE</CollegeCode><DepartmentCode>CBAE</DepartmentCode><institution>Swansea University</institution><apcterm>Not Required</apcterm><funders/><projectreference/><lastEdited>2026-06-18T21:40:32.1938332</lastEdited><Created>2026-05-13T14:59:07.0412000</Created><path><level id="1">Faculty of Humanities and Social Sciences</level><level id="2">School of Management - Accounting and Finance</level></path><authors><author><firstname>Wei</firstname><surname>Song</surname><order>1</order></author><author><firstname>Suntina</firstname><surname>Sun</surname><orcid>0000-0002-5056-9639</orcid><order>2</order></author><author><firstname>Qingjing</firstname><surname>Zhang</surname><order>3</order></author><author><firstname>Zhuang</firstname><surname>Zhang</surname><order>4</order></author></authors><documents/><OutputDurs/></rfc1807>
spelling 2026-06-18T21:40:32.1938332 v2 71893 2026-05-13 Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167 2e8f85688626fa70d0386d0ccba4a30c 0000-0002-5056-9639 Suntina Sun Suntina Sun true false 2026-05-13 CBAE We examine whether and how changes in bank accounting standards influence borrowers’ earnings management activities. Exploiting the implementation of FAS 166/167, which required banks to consolidate previously off-balance-sheet securitized assets, we find that borrowing firms increase their use of accrual-based earnings management following the reform. This effect is notably stronger among borrowers with greater financing needs and higher information opacity. Overall, our study documents a previously underexplored spillover effect of bank accounting reforms on borrowers’ accounting practices and underscores the importance of considering possible borrower-level responses when evaluating future accounting reforms in the banking sector. Journal Article Review of Quantitative Finance and Accounting Springer Nature 0924-865X 1573-7179 18 6 2026 2026-06-18 https://doi.org/10.1007/s11156-026-01532-7 In press COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University Not Required 2026-06-18T21:40:32.1938332 2026-05-13T14:59:07.0412000 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Wei Song 1 Suntina Sun 0000-0002-5056-9639 2 Qingjing Zhang 3 Zhuang Zhang 4
title Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167
spellingShingle Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167
Suntina Sun
title_short Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167
title_full Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167
title_fullStr Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167
title_full_unstemmed Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167
title_sort Does the Change in Accounting Requirements on Banks Affect Borrowers' Earnings Management? Evidence from FAS 166/167
author_id_str_mv 2e8f85688626fa70d0386d0ccba4a30c
author_id_fullname_str_mv 2e8f85688626fa70d0386d0ccba4a30c_***_Suntina Sun
author Suntina Sun
author2 Wei Song
Suntina Sun
Qingjing Zhang
Zhuang Zhang
format Journal article
container_title Review of Quantitative Finance and Accounting
publishDate 2026
institution Swansea University
issn 0924-865X
1573-7179
publisher Springer Nature
college_str Faculty of Humanities and Social Sciences
hierarchytype
hierarchy_top_id facultyofhumanitiesandsocialsciences
hierarchy_top_title Faculty of Humanities and Social Sciences
hierarchy_parent_id facultyofhumanitiesandsocialsciences
hierarchy_parent_title Faculty of Humanities and Social Sciences
department_str School of Management - Accounting and Finance{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Management - Accounting and Finance
url https://doi.org/10.1007/s11156-026-01532-7
document_store_str 0
active_str 0
description We examine whether and how changes in bank accounting standards influence borrowers’ earnings management activities. Exploiting the implementation of FAS 166/167, which required banks to consolidate previously off-balance-sheet securitized assets, we find that borrowing firms increase their use of accrual-based earnings management following the reform. This effect is notably stronger among borrowers with greater financing needs and higher information opacity. Overall, our study documents a previously underexplored spillover effect of bank accounting reforms on borrowers’ accounting practices and underscores the importance of considering possible borrower-level responses when evaluating future accounting reforms in the banking sector.
published_date 2026-06-18T06:11:48Z
_version_ 1868853840438099968
score 11.10977

Similar Items