Pre-publication revisions of bank financial statements: a novel way to monitor banks?
Andre Guettler,
Mahvish Naeem,
Lars Norden and
Bernardus F Nazar Van Doornik
No 1177, BIS Working Papers from Bank for International Settlements
Abstract:
We investigate whether pre-publication revisions of bank financial statements contain forward-looking information about bank risk. Using 7.4 million observations of monthly financial reports from all banks in Brazil during 2007-2019, we show that 78% of all revisions occur before the publication of these statements. The frequency, missing of reporting deadlines, and severity of revisions are positively related to future bank risk. Using machine learning techniques, we provide evidence on mechanisms through which revisions affect bank risk. Our findings suggest that private information about pre-publication revisions is useful for supervisors to monitor banks.
Keywords: banks; bank performance; regulatory reporting quality; regulatory oversight; machine learning (search for similar items in EconPapers)
JEL-codes: G21 G28 M41 (search for similar items in EconPapers)
Date: 2024-03
New Economics Papers: this item is included in nep-acc, nep-ban, nep-big and nep-cmp
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www.bis.org/publ/work1177.pdf Full PDF document (application/pdf)
https://www.bis.org/publ/work1177.htm (text/html)
Related works:
Journal Article: Pre-publication revisions of bank financial statements: A novel way to monitor banks? (2024) 
Working Paper: Pre-Publication Revisions of Bank Financial Statements: a novel way to monitor banks? (2024) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:1177
Access Statistics for this paper
More papers in BIS Working Papers from Bank for International Settlements Contact information at EDIRC.
Bibliographic data for series maintained by Martin Fessler ().