The Strategic Underreporting of Bank Risk

We show that banks significantly underreport the risk in their trading book when they have lower equity capital. Specifically, a decrease in a bank’s equity capital results in substantially more violations of its self-reported risk levels in the following quarter. Underreporting is especially freque...

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Veröffentlicht in:	The Review of financial studies 2017-10, Vol.30 (10), p.3376-3415
Hauptverfasser:	Begley, Taylor A., Purnanandam, Amiyatosh, Zheng, Kuncheng
Format:	Artikel
Sprache:	eng
Schlagworte:	Banks Discontinuity Equity capital Incentives Regulation Regulation of financial institutions Trading Underreporting Violations
Online-Zugang:	Volltext
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