Disclosure and bank risk: Evidence from European banks

Yener Altunbas; Atiqur Khan; John Thornton

Disclosure and bank risk: Evidence from European banks

Yener Altunbas
, Atiqur Khan
, John Thornton

Faculty of Business and Law

Research output: Contribution to journal › Article › peer-review

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
Journal	Finance Research Letters
Volume	58
Issue number	B
Publication status	Published - 1 Dec 2023

Keywords

Disclosure, Bank risk, European banks

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Cite this

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