Speaker：Chong Wang

Topic：The Effects of IFRS 9 on Loan Loss Recognition Timeliness: Early Evidence

Abstract：Using international banks from 33 countries, we examine the impact of IFRS 9 on loan loss recognition timeliness. Using a difference-in-differences empirical specification, our results reveal that the adoption of IFRS 9 increases the timeliness of loan loss recognition. Consistent with this standard impacting banks that were previously more reluctant to record loan losses, we find that this positive effect is more pronounced when banks with less loan loss reserves prior to IFRS 9 adoption. In addition, we find that the positive effect is greater for banks with riskier profiles and weaker external monitoring, suggesting that banks that are likely to be more subjected to more future loan losses are being made to be more timely in accruing for loan losses as a result of IFRS 9 adoption. Overall, our paper provides an early insight into an important accounting standard that revolutionizes banks’ accounting for their loan losses and that could have broader effects on the banking system and the broader economy.

Time：14:00-15:30

Date: Friday, October 111

Location：Academic Hall 606