skip to primary navigationskip to content
 

Dr Amir Amel-Zadeh

Amir Amel-Zadeh

Title of research: Earnings Management and Bank Capital

This project considers the role of earnings management in generating incentives for financial institutions to carry risk on their balance sheet. The role of mark-to-market accounting and asset sales have been emphasized as a problem for restructuring loan portfolios and recapitalizing banks, but there is less investigation of this channel in creating balance sheet problems in the first place. In particular, we examine how market sentiment affects the valuation of different sources of bank earnings, interest income versus trading gains, over the economic cycle. If mark-to-market generated income attracts a higher market valuation during economic booms,  bank managers will, in the short run, be inclined to cater to market sentiment in their quest to maximize value thus holding more assets on their balance sheet that are susceptible to market movements.  We believe this hypothesis is underemphasized in the crisis and efforts at reform.

Research Update March 2016

Research Update September 2015

SSRN page

 

 

RSS Feed Latest news

Best Student Paper Award 2021 - competition is now open

Feb 12, 2021

For the last 13 years, Cambridge Finance is offering its Best Student Paper Award. The award comprises a cash honorarium of £1,000 and a certificate is awarded to the author of the best student paper in finance presented during the 2020-2021 academic year.

View all news