Loan, security, and dividend choices by individual (unconsolidated) public and private commercial banks Academic Article uri icon


  • Using call report data, we consider whether the discretionary portion of loan loss provisions, loan charge-offs, securities gains and losses, and dividends are influenced by the bank's level of capital, earnings, and taxes. We studied more than 11,000 banks. We find that banks below a capital adequacy threshold often make discretionary choices that reduce earnings and capital. Banks above the threshold exhibit different discretionary outcomes, with evidence of income smoothing and tax-advantaged actions. 2000 Elsevier Science Ltd. All rights reserved.

published proceedings

  • Journal of Accounting and Public Policy

author list (cited authors)

  • Niswander, F., & Swanson, E. P.

citation count

  • 11

complete list of authors

  • Niswander, Frederick||Swanson, Edward P

publication date

  • January 2000