Earnings management with the estimated loss of credits in Brazilian and Portuguese-Spanish banks

Abstract

The search evaluated the existence of earnings management in Brazilian and Portuguese-Spanish financial institutions using estimates of loss on credit operations. Estimates of credit operations (loans) are the main estimate of financial institutions, given the characteristics of institutions, the management of results in the banking system is especially sensitive to the risks that financial institutions are exposed and potential impacts of the effectiveness of those risks. The international literature shows that banks manage your earnings with discretion in the constitution of loss estimates on loans. In this sense, the research turned to the analysis of discretionary accumulations in a sample of Brazilian and Portuguese-Spanish financial institutions from June 2009 to December 2014. As a result, it was possible to observe that Brazilian and Portuguese-Spanish financial institutions use expenses with provisions on loan operations to earnings management.

Keywords

• Gerenciamento de resultados
• Instituições financeiras
• Estimativa de perda de créditos
• Operações de crédito