The bright side of common ownership: Evidence from bank transparency

IF 5.5 3区管理学 Q1 BUSINESS, FINANCE

British Accounting Review Pub Date : 2024-11-01 DOI:10.1016/j.bar.2024.101445

Haerang Park , Shams Pathan , Konstantinos Stathopoulos , Alex Marwick

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引用次数: 0

Abstract

Over 74% of US banks share common ownership with other banks. Our analysis of a large sample of US banks reveals that those with greater common ownership demonstrate heightened transparency. This manifests as reduced discretion in loan loss provisions, improved financial statement readability, and enhanced comparability. We pinpoint three underlying mechanisms: decreased private information gathering, increased stock liquidity, and diminished managerial incentives for opacity. Furthermore, these commonly owned banks exhibit lower crash risk due to their improved transparency. Our findings hold after using various proxies and two endogeneity-reduction methods: a difference-in-differences analysis based on the 2009 Blackrock–Barclays Global Investors merger and an instrumental variable approach using Russell 2000 index inclusions. Overall, our study underscores the positive impact of common ownership in the banking sector.

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共同所有权的光明面：银行透明度的证据

超过 74% 的美国银行与其他银行拥有共同所有权。我们对大量美国银行样本的分析表明，那些共同所有权较多的银行显示出更高的透明度。这表现为贷款损失准备金的酌处权减少、财务报表可读性提高以及可比性增强。我们指出了三个基本机制：减少私人信息收集、增加股票流动性和减少管理者的不透明动机。此外，由于透明度的提高，这些共同拥有的银行表现出较低的崩盘风险。在使用了各种代用指标和两种内生性还原方法后，我们的研究结果仍然成立：基于 2009 年 Blackrock-Barclays Global Investors 合并的差异分析，以及使用罗素 2000 指数夹杂物的工具变量方法。总体而言，我们的研究强调了共同所有权对银行业的积极影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.