Abstract
We employ a self-developed dictionary designed to analyze bank financial statements to study the link between disclosure and bank risk in a sample of 225 European banks over the period 2011-2017. Disclosure is associated with reduced default risk for all but the most aggressive risk-taking banks, with the result weakly conditional on capital strength. At the same time, disclosure appears to increase systemic risk for European banks.
Original language | English |
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Article number | 104499 |
Journal | Finance Research Letters |
Volume | 58 |
Issue number | Part B |
Early online date | 19 Sep 2023 |
DOIs | |
Publication status | Published - Dec 2023 |
Keywords
- : Disclosure, bank risk, European banks