Bank Competition, Loan Portfolio Concentration and Stock Price Crash Risk: The Role of Tone Ambiguity

IF 4.5 2区 管理学 Q1 BUSINESS
Nikolaos C. Gkoumas, George N. Leledakis, Emmanouil G. Pyrgiotakis, Ion Androutsopoulos
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Abstract

We examine the association between loan portfolio concentration, competition and stock price crash risk in the US banking industry. We find that during economic downturns, banks with poorly diversified loan portfolios that operate in competitive markets are more likely to crash. Importantly, we show that this link is channelled through aggressive earnings management and ambiguous annual reports. Therefore, managerial ambiguity can serve as an early warning signal of information obfuscation, which can eventually lead to stock price crashes. As a quasi‐natural experiment, we use the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act in 2018. This policy lowered the regulatory requirements and oversight for a specific group of large banks. The results of a difference‐in‐differences analysis support our baseline findings and add to the ongoing debate on the roots of the 2023 banking crisis. Therefore, our findings can be informative to market participants, regulators and policy makers.
银行竞争、贷款组合集中度与股价暴跌风险:语气模糊的作用
我们研究了美国银行业贷款组合集中度、竞争与股价崩盘风险之间的关联。我们发现,在经济衰退期间,在竞争激烈的市场中经营的贷款组合多样化程度低的银行更有可能崩盘。重要的是,我们发现这种联系是通过积极的盈利管理和模棱两可的年度报告传递的。因此,管理层的模糊性可以作为信息混淆的预警信号,最终导致股价崩盘。作为准自然实验,我们以 2018 年通过的《经济增长、监管减免和消费者保护法案》为例。这项政策降低了对特定大型银行集团的监管要求和监督力度。差分分析的结果支持了我们的基线研究结果,并为目前关于 2023 年银行业危机根源的讨论增添了新的内容。因此,我们的研究结果可以为市场参与者、监管者和政策制定者提供参考。
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来源期刊
CiteScore
10.00
自引率
12.50%
发文量
87
期刊介绍: The British Journal of Management provides a valuable outlet for research and scholarship on management-orientated themes and topics. It publishes articles of a multi-disciplinary and interdisciplinary nature as well as empirical research from within traditional disciplines and managerial functions. With contributions from around the globe, the journal includes articles across the full range of business and management disciplines. A subscription to British Journal of Management includes International Journal of Management Reviews, also published on behalf of the British Academy of Management.
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