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Transparency and financial reporting in mid-20th century British banking

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  • Billings, Mark
  • Capie, Forrest

Abstract

Until 1970, British banks were firm believers in the merits of ‘non-disclosure’, which obscured their ‘true’ profits and capital through profits smoothing and the use of hidden reserves. Many other companies adopted the same view for as long as legislation permitted, but there were special reasons why non-disclosure endured for longer in banking. This paper examines the persistence and demise of non-disclosure in banking, placing it in the context of the wider development of financial reporting in Britain, and highlights similarities and differences in financial reporting between banks and other types of company.

Suggested Citation

  • Billings, Mark & Capie, Forrest, 2009. "Transparency and financial reporting in mid-20th century British banking," Accounting forum, Elsevier, vol. 33(1), pages 38-53.
    • Handle: RePEc:eee:accfor:v:33:y:2009:i:1:p:38-53
    DOI: 10.1016/j.accfor.2008.07.003
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    References listed on IDEAS

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    2. Mahdi Salehi & Bahman Jamalikazemini & Shayan Farhangdoust, 2018. "Board compensation and disclosure quality: Corporate governance interference," Contaduría y Administración, Accounting and Management, vol. 63(4), pages 39-40, Octubre-D.
    3. Nurfarahin M. Haridan & Ahmad F. S. Hassan & Yusuf Karbhari, 2018. "Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 1015-1043, December.
    4. Mark Billings & Forrest Capie, 2011. "Financial crisis, contagion, and the British banking system between the world wars," Business History, Taylor & Francis Journals, vol. 53(2), pages 193-215.
    5. Heidhues, Eva & Patel, Chris, 2011. "A critique of Gray's framework on accounting values using Germany as a case study," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 22(3), pages 273-287.
    6. Andrea Quintiliani, 2019. "Impact of Financial Transparency on SMEs’ Value," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(6), pages 1-15.
    7. Apergis, Emmanuel & Apergis, Iraklis & Apergis, Nicholas, 2019. "A new macro stress testing approach for financial realignment in the Eurozone," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 61(C), pages 52-80.
    8. Bholat, David & Lastra, Rosa & Markose, Sheri & Miglionico, Andrea & Sen, Kallol, 2016. "Non-performing loans: regulatory and accounting treatments of assets," Bank of England working papers 594, Bank of England.

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