This book analyses the use of qualitative and quantitative content analysis methodologies for risk disclosure practices in the European banking industry. While doing so, it assesses the level of transparency of financial and non-financial reports by focusing on the information disclosed to the public with reference to risk exposure and management.
By drawing upon both qualitative and quantitative techniques, the book proposes two different methodological approaches to assess the information European financial institutions provide to the public with reference to the risk disclosure and derivative disclosure in their annual financial reports. These methodologies are subsequently employed to carry out empirical analyses on samples of European banks. By exploiting the points of strength of both qualitative and quantitative content analysis methodologies, this book offers insights into the advantages and disadvantages of these methodologies.
The book is a must-read for academics and researchers that analyze disclosure practices of financial and non-financial firms, as well as financial analysts and other practitioners that are interested in assessing the level of transparency and evaluating the disclosures of financial and non-financial firms, especially, but not exclusively, with reference to risk disclosure and derivative disclosure.
Author(s): Salvatore Polizzi
Series: UNIPA Springer Series
Publisher: Springer
Year: 2022
Language: English
Pages: 152
City: Cham
Acknowledgements
Contents
About the Author
Chapter 1: Introduction
References
Chapter 2: Risk Disclosure in Banking: The State of the Art
2.1 Introduction
2.2 The Theoretical Frameworks Adopted in the Risk Disclosure Literature
2.2.1 Agency Theory
2.2.2 Management Entrenchment Theory
2.2.3 Signalling Theory
2.2.4 Stakeholder Theory
2.2.5 Legitimacy Theory
2.2.6 Political Cost Theory
2.2.7 Proprietary Cost Theory
2.2.8 Impression Management Theory
2.2.9 Resource Dependence Theory
2.3 Approach Adopted to Review the Literature
2.4 Overview of the Literature on Risk Disclosure in Banking
2.4.1 A Theoretical Analysis of Risk Disclosure in Banking
2.4.2 Methodological Approaches Adopted in the Empirical Literature
2.4.2.1 The Use of Binary and Non-Binary Indicators Within the Content Analysis Methodological Framework
2.4.2.2 Word Occurrences and Disclosure Dictionaries Within the Content Analysis Methodological Framework
2.4.2.3 Qualitative Content Analysis Methodologies
2.4.2.4 Other Methodologies Different from Content Analysis
2.4.3 Types of Risks Analysed
2.4.4 Types of Documents and Narrative Disclosures Analysed
2.4.5 Disclosure Practices of Islamic Banks
2.4.6 Risk Disclosure and Market Discipline
2.4.7 Analysis of Other Relevant Contributions
2.5 General Considerations on the Literature
2.5.1 Time Horizon Analysed by the Bank Risk Disclosure Literature
2.5.2 Geographic Areas Investigated by the Bank Risk Disclosure Literature
2.5.3 Considerations on the Methodologies Employed to Analyse Bank Risk Disclosure
2.6 Avenues for Future Research
2.7 What Do We Know and What Do We Need to Know About Risk Disclosure in Banking?
References
Chapter 3: Derivative Disclosure Practices in the European Banking System: A Qualitative Analysis of Globally Systemically Imp...
3.1 Introduction
3.2 An Accounting and Regulatory Perspective on Derivative Instruments in Banking
3.3 Empirical Methodology and Data: A Qualitative Content Analysis Approach
3.4 Results and Discussion
3.4.1 BNP Paribas
3.4.2 Banco Santander
3.4.3 Deutsche Bank
3.4.4 Unicredit
3.5 Research Findings: Theoretical and Policy Implications
3.5.1 Backward-Looking Vs. Forward-Looking Disclosure
3.5.2 Qualitative and Quantitative Data
3.5.3 Fragmentary Disclosures
3.5.4 The Marginal Role of the Management Commentary
3.6 Insights from the Qualitative Analysis of Derivative Disclosures
References
Chapter 4: The Effects of the Single Supervisory Mechanisms on Bank Risk Disclosure: Evidence from a Quantitative Content Anal...
4.1 Introduction
4.2 Theoretical Framework, Literature Review and Hypotheses Development
4.2.1 Preliminary Considerations on Accounting Harmonisation
4.2.2 The Importance of Banking Supervision in Bank Disclosure Practices: The Organisation Society Theories
4.2.3 Effective Monitoring in a Multi-supervisor Setting
4.2.4 Empirical Literature on Risk Disclosure and the Effects of the Banking Union
4.2.5 Hypothesis Development
4.3 Methodology
4.3.1 Data
4.4 Results
4.4.1 Discussion
4.4.2 Robustness Tests
4.5 Policy Implications
4.6 Insights from Quantitative Content Analysis: The Relationship Between Banking Union and Bank Disclosure
References
Chapter 5: Concluding Remarks
References
