Transparency – A Requirement For Market Discipline In The Light Of Prior Research Literature

Our paper approaches “transparency” as a requirement for market discipline from a different perspective – the researchers one - presenting an overview image of the economic theories derived from these concepts, by analyzing and discussing positive arguments and negative reasons for improving transparency, highlighting as well its beneficial consequences identified along time, which is important to all researchers interested on it. The main reason of focusing our research in this area was the continuously increasing importance given to transparency and disclosure, as a consequence of the most recently corporate failures and accounting scandals, not only among regulatory authorities and at companies’ level, but in academic environment, too, where we have assisted at an increasingly interest in identifying and assessing their causes and effects. Thus, our paper provides a different approach, by focusing upon the trend of research studies on disclosure and transparency in a particular economic field, the banking one, thus offering a qualitative analysis of prior empirical evidences.