Disclosure and bank risk: Evidence from European banks

Yener Altunbas, Atiqur Khan and John Thornton

Finance Research Letters, 2023, vol. 58, issue PB

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.

Keywords: Disclosure; Bank risk; European banks (search for similar items in EconPapers)
JEL-codes: G21 G24 G33 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323008711

DOI: 10.1016/j.frl.2023.104499

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