| Banker motivation for loan loss provisioning has been extensively researched. Results have been inconclusive or divergent. No studies have evaluated the relationship between loss provisioning and conservative leadership characteristics. As accounting standards are steered away from the underlying concept of conservatism, understanding whether conservative leadership characteristics are associated with management's accounting decisions is timely and important. The purpose of this quantitative research study was to determine whether loan loss provisioning behaviors between 1984 and 2004, by conservative commercial bank management in the United States, had a pattern of sensitivity that is similar to conservative accounting behaviors. The results suggested that conservatism did have an association with provisioning behaviors; however, determining the pattern of sensitivity will require additional research. |
