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Keywords: capital adequacy
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Journal Articles
Accounting Horizons (2013) 27 (4): 693–710.
Published: 01 December 2013
... values to attack its reliability. This study examines how noise in reported fair values impacts bank capital adequacy ratios. If measurement error causes reported capital levels to deviate from fundamental levels, then regulators could misidentify a financially healthy bank as troubled (type I error...