Nonlinear dynamics in discretionary accruals: An analysis of bank loan-loss provisions

Several studies have analyzed discretionary accruals to address earnings-smoothing behaviors in the banking industry. We argue that the characteristic link between accruals and earnings may be nonlinear, since both the incentives to manipulate income and the practical way to do so depend partially on the relative size of earnings. Given a sample of 15,268 US banks over the period 1996–2011, the main results in this paper suggest that, depending on the size of earnings, bank managers tend to engage in earnings-decreasing strategies when earnings are negative (“big-bath”), use earnings-increasing strategies when earnings are positive, and use provisions as a smoothing device when earnings are positive and substantial (“cookie-jar” accounting). This evidence, which cannot be explained by the earnings-smoothing hypothesis, is consistent with the compensation theory. Neglecting nonlinear patterns in the econometric modeling of these accruals may lead to misleading conclusions regarding the characteristic strategies used in earnings management.

Multi-Element Analysis of Spanish Date Palm (Phoenix dactylifera L.) by Inductively Coupled Plasma-Based Techniques. Discrimination Using Multivariate Statistical Analysis

The elemental analysis of Spanish palm dates by inductively coupled plasma atomic emission spectrometry and inductively coupled plasma mass spectrometry is reported for the first time. To complete the information about the mineral composition of the samples, C, H, and N are determined by elemental analysis. Dates from Israel, Tunisia, Saudi Arabia, Algeria and Iran have also been analyzed. The elemental composition have been used in multivariate statistical analysis to discriminate the dates according to its geographical origin. A total of 23 elements (As, Ba, C, Ca, Cd, Co, Cr, Cu, Fe, H, In, K, Li, Mg, Mn, N, Na, Ni, Pb, Se, Sr, V, and Zn) at concentrations from major to ultra-trace levels have been determined in 13 date samples (flesh and seeds). A careful inspection of the results indicate that Spanish samples show higher concentrations of Cd, Co, Cr, and Ni than the remaining ones. Multivariate statistical analysis of the obtained results, both in flesh and seed, indicate that the proposed approach can be successfully applied to discriminate the Spanish date samples from the rest of the samples tested.

D. Bank note, 1805

One bank note for the Bank of England, dated March 29, 1805.