Do Corporate Governance Disclosures Matter for Bank Cost of Capital? Empirical Evidence from Accounting Statements of Egyptian Banks

ElBannan, Mona A.; Elbannan, Mohamed A.

doi:10.5430/afr.v4n1p59

Cited by 5 publications

(4 citation statements)

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“…Erkens, Hung, and Matos (2009) find in a sample of 306 financial firms in 31 countries that institutional ownership and board independence, as governance measures, are positively related to losses during the financial crisis. Moreover, Elbannan and Elbannan (2014b) argue that there is highly significant relation between bank governance disclosures and cost of capital, that is banks with large board size and more executive board directors are able to obtain finance from cheaper resources.…”

Section: The Financial Crisis and Governance In Financial Institutionsmentioning

confidence: 99%

The Financial Crisis, Basel Accords and Bank Regulations: An Overview

ElBannan

2017

ijafr

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This theoretical study presents the different phases for the evolution of Basel Accords since 1988, and the continual efforts of Basel Committee on banking supervision to set out an effective framework to improve the banking sector governance and performance. In literature, compliance with Basel requirements concerning minimum capital requirements, powerful supervision and effective market discipline through information transparency and disclosure have attracted many researchers to study its impact on bank performance and cost of capital. In spite of the risk-based capital adequacy, regulatory and supervisory requirements set by Basel Accords, the financial crisis 2007, which causes instability and turmoil in the whole banking sector, was induced mainly by weak risk management measures, such as stress testing and other risk management tools that were unable to forecast the losses and the adverse unexpected outcomes and determine the size of capital needed to overcome severe shocks.

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Section: The Financial Crisis and Governance In Financial Institutionsmentioning

confidence: 99%

The Financial Crisis, Basel Accords and Bank Regulations: An Overview

ElBannan

2017

ijafr

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“…Banks' cost of equity relates to their performance but also to their corporate governance (Elbannan & Elbannan, 2014). Thus, we control for a bank's governance, more specifically audit committee size ( ACSize ) and the number of audit committee financial experts ( ACFE ) because both can affect financial reporting quality (Abbott et al, 2004; Carcello et al, 2011; Khemakhem & Fontaine, 2019).…”

Section: Methodsmentioning

confidence: 99%

Section: T a B L E 2 Variables Definitionsmentioning

confidence: 99%

Banks' voluntary disclosure in the audit committee reports, cost of equity and the mediating role of financial analysts

Sahyoun

Magnan

2022

Int J Auditing

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Voluntary disclosure in the audit committee report is expected to provide additional information about the activities undertaken to protect investors. The Securities and Exchange Commission's (SEC) ultimate aim in initially promulgating audit committee disclosure requirements was to reduce firms' cost of equity. However, prior research finds that voluntary disclosure in the audit committee report is akin to impression management. In 2015, the SEC issued a concept release encouraging audit committees to provide additional voluntary disclosures in their reports beyond mandatory requirements. In that context, this paper analyses the effect of the audit committee voluntary disclosure on the cost of equity, with financial analysts playing a mediating role. The sample comprises the top US bank holding companies from 2006 to 2015. We manually code the voluntary disclosure in audit committee reports using a scoring grid. Results show that audit committee voluntary disclosure increases the cost of equity. In addition, the association between voluntary disclosure and the cost of equity is mediated by financial analysts. Hence, we infer that the impression management undertone of voluntary disclosures affects financial analysts' coverage and forecasting properties, which in turn lead to an increase in the cost of equity. The paper's empirical evidence highlights the effects of impression management disclosure by analysing corporate governance voluntary disclosures, cost of equity and financial analysts and brings the issue to the attention of banking regulators, SEC and investors.

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“…Negara Indonesia yang merupakan negara berkembang, bank menjadi benteng utama dalam sistem keuangan dan mendominasi pasar keuangan. Oleh sebab itu, Indonesia sebagai negara berkembang harus lebih menonjolkan sektor di bidang perbankan karena bank yang memiliki peran penting dalam penyediaan uang, penjamin keamanan, dan meningkatkan pertumbuhan ekonomi (Elbannan & Elbannan, 2014). Didalam perekonomian, lembaga keuangan melaksanakan peran vital dalam kegitan keuangan,seperti pembayaran, perilaku permintaan pasar keuangan dan konsep kesesuaian pada pasokan, berurusan dengan pasar serta berbagai instrumen keuangan, memastikan keterbukaan di pasar keuangan, dan melakukan fungsi bank seperti transfer dan manajemen resiko (Masood & Ashraf, 2012).…”

Section: Pendahuluanunclassified

Pengaruh Faktor Keuangan dan Non Keuangan terhadap Financial Sustainability Ratio Perbankan

Suci

Rahim

2021

j.manage.bus.rev.

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Desain penelitian ini adalah desain pengujian hipotesis. Populasi penelitian ini meliputi seluruh Bank Umum swasta Nasional Non Devisa selama periode 2013-2019. Teknik pemilihan sampel menggunakan metode Purposive sampling dan data penelitian diperoleh 18 bank. Metode analisis data yang digunakan adalah analisis regresi dengan data panel. Hasil penelitian ini menunjukkan : Capital Adequacy Ratio (CAR) berpengaruh negatif dan tidak signifikan, kemudian Non Performing Loan (NPL), Biaya Operasional terhadap pendapatan operasional (BOPO), Loan to Deposit Ratio (LDR), Inflasi, dan Ukuran Perusahaan (Size) berpengaruh positif tidak signifikan. Sedangkan Return On Assets (ROA) satu-satunya variabel yang memiliki pengaruh positif dan siginifikan terhadap financial sustainability ratio (FSR). Nilai adjusted R square sebesar 0,236, menunjukkan bahwa Financial Sustainability Ratio (FSR) dipengaruhi oleh Loan to Deposit Ratio (LDR), Non Performing Loan (NPL), Return On Assets (ROA), Biaya Operasional terhadap pendapatan operasional (BOPO), Capital Adequacy Ratio (CAR), Inflasi, dan Ukuran Perusahaan (Size) sebesar 23,6 % , sedangkan sisanya 76,3% dipengaruhi oleh faktor lain yang tidak diteliti dalam penelitian ini. Hasil penelitian ini dapat digunakan untuk melakukan penelitian selanjutnya, dan menambah wawasan pengetahuan dalam bidang perbankan, khususnya dalam kinerja keuangan perbankan. Sehingga investor/nasabah dapat lebih mudah membuat keputusan dengan adanya informasi terhadap kinerja keuangan perushaan yang terkait.

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Do Corporate Governance Disclosures Matter for Bank Cost of Capital? Empirical Evidence from Accounting Statements of Egyptian Banks

Cited by 5 publications

References 53 publications

The Financial Crisis, Basel Accords and Bank Regulations: An Overview

The Financial Crisis, Basel Accords and Bank Regulations: An Overview

Banks' voluntary disclosure in the audit committee reports, cost of equity and the mediating role of financial analysts

Pengaruh Faktor Keuangan dan Non Keuangan terhadap Financial Sustainability Ratio Perbankan

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