Date of Publication
7-2026
Document Type
Master's Thesis
Degree Name
Master of Science in Accountancy
Subject Categories
Accounting
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Advisor
Dr. Arnel Onesimo O. Uy
Defense Panel Chair
Dr. Joy S. Rabo
Defense Panel Member
Dr. Jonathan Binaluyo
Mr. Aristotle Manuel Go
Abstract (English)
Income smoothing practice remains to be a phenomenon that should be continuously investigated, as this practice may be informative or obfuscating in nature, specifically in the banking industry where loan loss provisions are utilized for this earnings management purpose. The role of adoption of IFRS 9, the prevailing economic environment, and the audit quality that bank receives, can impact the way that provisioning is conducted by the banking industry. Most studies that observe these variables are located in the context of European and African countries, and there are only a handful of studies that utilize the Southeast Asian countries. Utilizing panel data collected from Orbis-Asia Pacific, this study provides evidence of income smoothing behavior in the banks of ASEAN-5. Banks continue to adopt income smoothing practice under the IFRS 9. Non-Big 4 auditing firms mitigate the income smoothing practices of banks. Macroeconomic variables are significantly associated with the income smoothing practice of banks. Policy implications of this study include reassessing whether provisioning system should be accepted as forward-looking in nature and thus, more robust disclosures surrounding the calculations of loan loss provisions should be further studied, particularly the consideration of macroeconomic variables; or if income smoothing practice should be ideally mitigated by standard setters moving forward.
Abstract Format
html
Abstract (Filipino)
Patuloy na dapat suriin ang pagsasagawa ng income smoothing, sapagkat ito ay maaaring makatulong sa pag-unawa ng financial statements o makadulot ng lalong pagkalito, partikular na sa industriya ng mga bangko kung saan ginagamit ang loan loss provisions para sa pamamahala ng kinita o earnings management. Maaaring makaapekto ang pag-adopt ng IFRS 9, umiiral na macroeconomy, at kalidad ng naisasagawang audit, sa pamamaraan kung paano mag-ulat ng provisioning ang mga bangko. Karamihan sa mga pag-aaral kaugnay nito ay matatagpuan sa konteksto ng mga bansang Europa at Africa. Sa kabilang dako, bihira lamang ang mga pag-aaral na nagsusuri sa mga bansang timog-silangang Asya. Gamit ang panel data na tinipon mula sa Orbis-Asia Pacific, nag-uulat ang pag-aaral na ito ng ebidensya ng pagsasagawa ng income smoothing sa mga bangko sa ASEAN-5. Patuloy na nagsasagawa ng income smoothing ang mga bangko sa ilalim ng IFRS 9. Nakababawas sa pagsasagawa ng income smoothing ang mga non-Big4 auditing firms. Lubos na maiuugnay ang macroeconomic variables sa pagsasagawa ng income smoothing ng mga bangko. Dulot nito, ipinapahiwatig ng pag-aaral na ito ang muling pagsisiyasat ng mga kinauukulan kung dapat bang forward-looking talaga ang sistema ng provisioning at bagkus, maglagay pa ng mas matatatag na disclosures kaugnay sa kung paano nakuwenta ang provisions; o kung ang pagsasagawa ng income smoothing ay bagay na dapat nang tuluyang bawasan at pahupain ng mga nag-aayos ng pamantayan sa accounting.
Abstract Format
html
Language
English
Format
Electronic
Keywords
Financial risk management
Recommended Citation
Narag, D. (2026). The moderating role of IFRS 9 adoption, audit quality, and macroeconomy in the bank earnings management of ASEAN-5 through loan loss provisions. Retrieved from https://animorepository.dlsu.edu.ph/etdm_acc/18
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Embargo Period
7-2027
