The effect of natural disasters on big bath earnings management of banks: evidence from the 2005 US hurricane season
研究了2005年美国飓风对银行业巨额冲销盈余管理的影响，发现受灾银行在飓风后增加了更多可自由支配的贷款损失准备金，且这种增加源于机会主义会计行为。
We investigate the effect of the 2005 US hurricane strikes on big bath earnings management in the banking industry. Using a difference-in-differences approach, we find that banks affected by the hurricanes add more discretionary loan loss provisions (DLLP) after the shock relative to unaffected banks. Further tests suggest that the hurricane-induced DLLP increase is attributable to opportunistic big bath accounting rather than to a precautionary motive. We also show that the effect of the hurricanes on big bath earnings management is more pronounced in banks that were managing earnings upwards more aggressively before the hurricanes.