Banks play a central role in creating liquidity for the economy by financing illiquid assets with liquid liabilities. This paper examines the effect of accounting restatements on bank liquidity creation. Using a difference-in-differences research design, I show that restatements trigger a significant reduction in liquidity creation. This effect derives mainly from banks shifting away from illiquid assets and toward liquid assets. Further analysis reveals that restatements affect liquidity creation through supervisory enforcement actions and unravelling of risk exposures accumulated in the misreporting period. Government deposit insurance blunts the effect of an information asymmetry channel.

中文翻译：

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会计重述和银行流动性创造

银行通过用流动负债为非流动资产融资，在为经济创造流动性方面发挥着核心作用。本文研究了会计重述对银行流动性创造的影响。使用差异中的差异研究设计，我表明重述会引发流动性创造的显着减少。这种影响主要源于银行从非流动资产转向流动资产。进一步分析表明，重述通过监管执法行动和揭示误报期间累积的风险敞口影响流动性创造。政府存款保险削弱了信息不对称渠道的影响。