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
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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)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:1177

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