Do Risk Disclosures Matter for Bank Performance? A Moderating Effect of Risk Committee

Nahar, Shamsun; Jahan, Mosammet Asma

doi:10.1080/17449480.2021.1942095

Cited by 9 publications

(3 citation statements)

References 86 publications

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“…The findings of the regression analysis are presented in Tables 3 and 4 Table 3 As can be observed in Table 3 RMI disclosure had a significant positive effect on ROA in both estimates. These results are consistent with those found by (Nahar & Jahan, 2021;Chandren et al 2017). Both studies found that RMI disclosure had a positive effect on ROA of the firms they examined.…”

Section: Regression Analysis For Rmi and Firm Profitabilitysupporting

confidence: 90%

“…Quantitative data analysis was carried out via STATA software version 14 and a regression model was used to examine whether there was a connection between RMD and the profitability of listed firms. Several researchers (Nahar & Jahan, 2021;Kassamany et al, 2022) disclosed to the public. The minimum disclosure was a disclosure of 49% of the required items and the maximum disclosure was a disclosure of 89% of the requirement as per CMSA these results imply that stakeholders did not get the full spectrum of required RMI as per CMSA (2002).…”

Section: Methodsmentioning

confidence: 99%

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Are risk management disclosures relevant to firm's profitability? A Tanzanian case

Mwenda,

Ibrahim

2023

KOMPARTEMEN

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This research investigated the relevance of risk management disclosures on firm’s profitability in Tanzania. Risk Management Disclosures (RMD) were measured using a disclosure index adopted from the Tanzania’s Capital Market Securities Act (CMSA) regulations while firms' profitability was represented by Return on Equity (ROE) and Return on Assets (ROA). A quantitative research approach was used, secondary data was collected from the annual reports of firms listed on the Dar es Salaam Stock Exchange (DSE) for the period ranging from 2010 to 2021. Panel regression modeling was used to estimate the parameters in this study. Results demonstrated that Risk Management Disclosure (RMD) was relevant to firm’s profitability since it had a significant and positive effect on ROA and ROE. Based on this, the research draws the conclusion that risk management disclosures are important as they assisted Tanzanian businesses to become more profitable. We recommend firms to include more risk management-related information in their annual reports for the benefit of users of financial statements. The study contributes to the existing body of knowledge by by adding new variables to the existing models

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Section: Regression Analysis For Rmi and Firm Profitabilitysupporting

confidence: 90%

Section: Methodsmentioning

confidence: 99%

Are risk management disclosures relevant to firm's profitability? A Tanzanian case

Mwenda,

Ibrahim

2023

KOMPARTEMEN

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“…This phenomenon gives insightful advice to the bank’s perspective that they add risk-related information in their annual reports, enhancing their CRs and goodwill. Besides, the disclosure of risk information reduces agency conflicts, improves performance and allows for more effective market regulation (Nahar and Jahan, 2021). Also, our research enhances the understanding by identifying how bank-specific factors (profitability, age and size) impact RD.…”

Section: Introductionmentioning

confidence: 99%

Role of risk disclosure on creditworthiness and driving forces of risk disclosure of banks: Islamic vs conventional banks

Hasan

Rabbani

Sarker

et al. 2023

IMEFM

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Purpose This study aims to examine the effect of risk disclosure (RD) on commercial banks’ credit rating (CR) in the context of Bangladesh. It also explores the factors influencing RD in both Islamic and conventional banks. Design/methodology/approach The sample includes 200 bank-year observations consisting of 20 commercial banks (15 conventional and 5 Islamic banks) from 2010 to 2019. The sample is further segregated into Islamic and conventional banks. Ordered logit and random effect ordinary least square models are used to analyze the data. Furthermore, the two-stage least squares approach is used to perform a robustness test. Findings This study shows that RD significantly positively impacts CR, with a stronger effect in Islamic banks than in conventional banks. This study also finds that banks’ age and leverage negatively influence CRs. Moreover, banks’ size and total capital have a positive and negative influence on CRs, respectively. This study also shows that the age of Islamic and conventional banks positively and negatively influences the RD scores, respectively. In contrast, the RD score of conventional banks is positively impacted by bank size. Practical implications By examining which variables substantially impact RD and, hence, CR scores, bank stakeholders may make better financing, investment and other policy decisions. Investors may choose stocks with a high level of RD in the annual reports as the earlier studies imply that higher RD enhances CR. Originality/value Only a few studies have examined the relationship between RD and CRs, while, to the best of the authors’ knowledge, this study is the maiden attempt in the Bangladesh context. This study also compares the link between Islamic and conventional banks.

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Empirical research on banks' risk disclosure: Systematic literature review, bibliometric analysis and future research agenda

Mies

2024

International Review of Financial Analysis

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Do Risk Disclosures Matter for Bank Performance? A Moderating Effect of Risk Committee

Cited by 9 publications

References 86 publications

Are risk management disclosures relevant to firm's profitability? A Tanzanian case

Are risk management disclosures relevant to firm's profitability? A Tanzanian case

Role of risk disclosure on creditworthiness and driving forces of risk disclosure of banks: Islamic vs conventional banks

Empirical research on banks' risk disclosure: Systematic literature review, bibliometric analysis and future research agenda

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