Journal Article

Assessing the condition of Japanese banks: how informative are accounting earnings?

Abstract: This article examines the accounting and stock market performance of banks from 1991 to 1997. Overall, the results indicate that the accounting, disclosure, and regulatory practices of Japanese banks have drive a wedge between their accounting and stock market returns in recent years and, furthermore, that regulatory forbearance might have become a more important source of value to shareholders than the value of assets in place.

Keywords: Bank profits - Japan; Japan; Stock market - Japan; Accounting;

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 1998

Volume: 22

Issue: Q IV

Pages: 12-34