"Family firms, Income smoothing and Financial Crisis: Evidence from European Countries"

Prudential supervisors’ independence and income smoothing in European banks

“…18 It may also be explained by the fact that on October 2008, the IASB introduced an urgent amendment to IAS 39, with respect to the reclassification of financial assets, which increased the ability of banks to smooth income fluctuations. 19 It is also consistent with the view that supervisors may be more tolerant during financial crises to avoid breakdowns or interruptions in capital flows (Huizinga and Laeven 2012), and with prior research that provides evidence that financial reporting quality was significantly affected by the financial crisis (Beccalli et al 2015;Curcio and Hasan 2015;Skala 2015;Filip and Raffournier 2012;Jordà et al 2016;Cruz et al 2015;Trombetta and Imperatore 2014;Porcuna 2018).…”