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Determinants of voluntary bank disclosure: evidence from Japanese Shinkin banks

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  • Mark M. Spiegel
  • Nobuyoshi Yamori

Abstract

Disclosure is widely regarded as a necessary condition for market discipline in a modern financial sector. However, the determinants of disclosure decisions are still unknown, particularly among banks. This paper investigates the determinants of disclosure by Japanese Shinkin banks in 1996 and 1997. This period is unique because disclosure by these banks was voluntary during this time. We find that banks with more serious bad loan problems, more leverage, less competitive pressure, and smaller banks were less likely to choose to voluntarily disclose. These results suggest that there may be a role for compulsory disclosure, as weak banks appear to disproportionately avoid voluntary disclosure.

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Bibliographic Info

Paper provided by Federal Reserve Bank of San Francisco in its series Pacific Basin Working Paper Series with number 03-03.

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Date of creation: 2003
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Handle: RePEc:fip:fedfpb:03-03

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Keywords: Japan;

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Citations

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Cited by:
  1. Mathias Hoffmann & Toshihiro Okubo, 2013. "'By a Silken Thread': Regional Banking Integration and Pathways to Financial Development in Japan's Great Recession," CESifo Working Paper Series 4090, CESifo Group Munich.
  2. Spiegel, Mark M. & Yamori, Nobuyoshi, 2007. "Market price accounting and depositor discipline: The case of Japanese regional banks," Journal of Banking & Finance, Elsevier, vol. 31(3), pages 769-786, March.
  3. Frederick T. Furlong & Robard Williams, 2006. "Financial market signals and banking supervision: are current practices consistent with research findings?," Economic Review, Federal Reserve Bank of San Francisco, pages 17-29.
  4. Elizabeth de Almeida Neves Di Beneditto & Raimundo Nonato Sousa da Silva, 2008. "Analysis of the Disclosure Level by Brazilian Financial Institutions Following the Basel Capital Accord (Basel II) – A multiple case study," Brazilian Business Review, Fucape Business School, vol. 5(3), pages 181-197, September.
  5. Nobuyoshi Yamori & Kei Tomimura & Kozo Harimaya, 2011. "What kinds of credit associations favour introducing new financial technology?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(4), pages 343-347.
  6. WATANABE Wako, 2007. "How Do Relationship Lenders Price Loans to Small Firms?: "Hold-Up" Costs, Transparency, and Private and Public Security," Discussion papers 07058, Research Institute of Economy, Trade and Industry (RIETI).
  7. Kazumine Kondo, 2010. "What Promotes Japanese Regional Banks to Disclose Credit Ratings Voluntarily?," Economics Bulletin, AccessEcon, vol. 30(2), pages 1091-1104.
  8. Kondo, Kazumine, 2010. "What Promotes Japanese Regional Banks to Disclose Credit Ratings Voluntarily?," MPRA Paper 20468, University Library of Munich, Germany.
  9. Mark Spiegel & Nobuyoshi Yamori, 2004. "Market price accounting and depositor discipline in Japanese regional banks," Working Paper Series 2004-27, Federal Reserve Bank of San Francisco.

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