Disclosure and bank risk: Evidence from European banks

Yener Altunbaş; Atiqur Khan; John Thornton

doi:10.1016/j.frl.2023.104499

Disclosure and bank risk: Evidence from European banks

Yener Altunbaş, Atiqur Khan, John Thornton

Norwich Business School

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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
Article number	104499
Journal	Finance Research Letters
Volume	58
Issue number	Part B
Early online date	19 Sept 2023
DOIs	https://doi.org/10.1016/j.frl.2023.104499
Publication status	Published - Dec 2023

Keywords

: Disclosure, bank risk, European banks

Access to Document

10.1016/j.frl.2023.104499Licence: CC BY-NC-ND

1-s2.0-S1544612323008711-mainFinal published version, 400 KBLicence: CC BY-NC-ND

Cite this

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