 Annual report tone and bank risk-taking behavior: Evidence from ChinaLu Wei, Mingye Wei, Haozhe Jing and Zhongbo Jing Research in International Business and Finance, 2025, vol. 77, issue PA Abstract: This paper explores how the textual tone of annual reports affects banks’ risk-taking. This paper divides tone into normal tone and abnormal tone and examines their influences on the risk-taking of banks’ assets and liabilities, respectively. By collecting 326 samples of 38 Chinese A-share listed banks’ annual reports during 2000–2020, the study finds that a more positive normal tone in annual reports indicates an increase in bank risk-taking behavior in the future. The competitive pressure and the policy shock plays a negative moderating role whereas the profitability has a positive moderating impact. Besides, the impact of the positive tone on increasing bank’s risk-taking behavior is more prominent for state-owned banks than that of non-state-owned banks. However, the abnormal tone can not predict the bank’s future risk-taking behavior. Finally, our findings show that the normal tone can provide forward-looking valuable information and has a significant predictive ability for a bank’s future risk-taking behavior and its insolvency risk. Keywords: Management tone; Risk-taking; Bank risk; Textual analysis; Annual reports (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:77:y:2025:i:pa:s0275531925001370 DOI: 10.1016/j.ribaf.2025.102881 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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