Starjournal Quotation Laux, Christian, Rauter, Thomas. 2017. Procyclicality of US Bank Leverage. Journal of Accounting Research 55 (2), 235-505.


RIS


BibTeX

Abstract

In light of the current debate about the link between accounting and financial stability, we investigate the determinants of procyclical book leverage for US commercial and savings banks. We find that total asset growth and GDP growth are both positively related to book leverage growth. Our evidence is not consistent with the notion that fair value accounting contributes to procyclical leverage or that historical cost accounting reduces procyclicality. Overall, the business model of banks is more important for procyclical leverage than accounting or regulatory risk weights.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Accounting Research
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title Procyclicality of US Bank Leverage
Volume 55
Number 2
Year 2017
Page from 235
Page to 505
Reviewed? Y
URL http://onlinelibrary.wiley.com/doi/10.1111/1475-679X.12163/epdf
DOI http://dx.doi.org/10.1111/1475-679X.12163

Associations

People
Laux, Christian (Details)
Rauter, Thomas (Former researcher)
Organization
Institute for Finance, Banking and Insurance IN (Details)
Google Scholar: Search