Akademik Veri Yönetim Sistemi
17th MODAV International Conference on Accounting., Türkiye, 22 Ekim 2020
This paper examines whether accounting
conservatism improves lending capacity of banks during the crisis periods. We measure
accounting conservatism and its relation with the lending capacity and the
sustainability reporting on Turkish deposit banks. We test our predictions
empirically through an unbalanced panel data of 32 Turkish deposit banks in
1999-2019. We hypothesize that banks with higher conditional conservatism would
use larger loan provisions and conditional accounting conservatism could reduce
adverse effect of the financial crises on the lending capacity of the banks. We also examine whether a bank’s engagement in
sustainability performance and reporting reduces information asymmetry and
leads to less demand for conservatism by outside stakeholders. We test whether a bank conditional
conservatism changes or not after starting to report sustainability information.
Our results are different with prior researches and we find no evidence of the
positive impact of conditionally conservative accounting policies on the supply
of bank loans. When we test our second hypotheses there are no significant the
relation between sustainability reporting and the level of conservatism.