ACCOUNTING CONSERVATISM AND SUSTAINABILITY REPORTING IN CHANGING TIMES: EVIDENCE FROM TURKISH BANKING INDUSTRY

Year 2021, Volume: 23 - Special Issue of MODAV's 17th International Conference on Accounting, 1 - 23, 28.03.2021

İdil Kaya , Destan Halit Akbulut

https://doi.org/10.31460/mbdd.841329

Cited By: 4

Abstract

The study aims to examine accounting conservatism in the Turkish banking sector from two sides. These can be expressed as lending policies and sustainability reporting. We firstly investigate whether accounting conservatism improves the lending capacity of banks during crisis periods. We hypothesize that higher conditional conservatism could reduce the adverse effect of the financial crises on the banks' lending capacity. We test our predictions empirically through an unbalanced panel data of 32 Turkish deposit banks in 1999-2019. We secondly examine whether a bank’s engagement in sustainability performance and reporting reduces information asymmetry and leads to less demand for conservatism by outside stakeholders. We test whether a bank conditional conservatism changes or not after starting to report sustainability information. The results of our primary hypotheses are consistent with our predictions and complement and support existing evidence in the empirical literature. We find evidence of the positive impact of conditionally conservative accounting policies on the supply of bank loans. When we test our sustainability reporting hypotheses, incoherent with prior researches and our predictions, there is no significant relationship between sustainability reporting and the level of conservatism.

Keywords

Accounting Conservatism, Sustainability Reporting, Financial Crises

Supporting Institution

Galatasaray Üniversitesi

Project Number

18.102.003

Thanks

This work is supported by Galatasaray University Scientific Research Fund [grant number: 18.102.003].

DEĞİŞİM DÖNEMLERİNDE MUHASEBEDE İHTİYATLILIK VE SÜRDÜRÜLEBİLİRLİK RAPORLAMASI: TÜRK BANKACILIK SEKTÖRÜNDEN KANITLAR

Abstract

Bu çalışma Türk bankacılık sektöründe muhasebe ihtiyatlılığını iki açıdan incelemektedir. Bunlar kredi politikaları ve sürdürülebilirlik raporlaması olarak ifade edilebilir. Çalışma, ilk olarak kriz dönemlerinde muhasebe ihtiyatlılığının, bankaların kredi verme kabiliyetlerini olumlu etkileyip etkilemediğini incelemektir. Temel varsayımımız daha yüksek koşullu muhafazakarlık düzeyinin finansal krizlerin bankaların borç verme kapasitesi üzerindeki olumsuz etkisini azaltabileceğidir. Ampirik araştırma kapsamında, öngörülerimiz 32 mevduat bankasının dengesiz panel verileriyle 1999-2019 döneminde test edilmiştir. Bu çalışmada ayrıca, bankaların sürdürülebilirlik performansına verdikleri önemin ve bu alandaki raporlamanın bilgi asimetrisini azaltarak dış paydaşların ihtiyatlılık talebi üzerindeki etkisi incelenmektir. Çalışmamızın bu kısmında bankaların muhasebe ihtiyatlılık seviyelerinin sürdürülebilirlik raporlamasına başlamasıyla birlikte değişip değişmediği test edilmiştir. Araştırma sonuçlarımız öngörülerimizle tutarlıdır ve ampirik literatürdeki mevcut kanıtları tamamlar ve destekler niteliktedir. Böylece koşullu ihtiyatlı muhasebe politikalarının banka kredilerinin arzı üzerindeki olumlu etkisi kanıtlanmaktadır. İkinci hipotezlerimizi test ettiğimizde, önceki araştırmalar ve öngörülerimizle tutarlı olmayan sonuçlar elde edilmiş, sürdürülebilirlik raporlaması ile muhafazakarlık düzeyi arasında bağlantı tespit edilememiştir.

Keywords

Muhasebede İhtiyatlılık, Sürdürülebilirlik Raporlaması, Finansal Krizler

Project Number

18.102.003

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