Annual report tone and bank risk-taking behavior: Evidence from China

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-03-22 DOI:10.1016/j.ribaf.2025.102881

Lu Wei , Mingye Wei , Haozhe Jing , Zhongbo Jing

{"title":"Annual report tone and bank risk-taking behavior: Evidence from China","authors":"Lu Wei , Mingye Wei , Haozhe Jing , Zhongbo Jing","doi":"10.1016/j.ribaf.2025.102881","DOIUrl":null,"url":null,"abstract":"<div><div>This paper explores how the textual tone of annual reports affects banks’ risk-taking. This paper divides tone into normal tone and abnormal tone and examines their influences on the risk-taking of banks’ assets and liabilities, respectively. By collecting 326 samples of 38 Chinese A-share listed banks’ annual reports during 2000–2020, the study finds that a more positive normal tone in annual reports indicates an increase in bank risk-taking behavior in the future. The competitive pressure and the policy shock plays a negative moderating role whereas the profitability has a positive moderating impact. Besides, the impact of the positive tone on increasing bank’s risk-taking behavior is more prominent for state-owned banks than that of non-state-owned banks. However, the abnormal tone can not predict the bank’s future risk-taking behavior. Finally, our findings show that the normal tone can provide forward-looking valuable information and has a significant predictive ability for a bank’s future risk-taking behavior and its insolvency risk.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102881"},"PeriodicalIF":6.3000,"publicationDate":"2025-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0275531925001370","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

This paper explores how the textual tone of annual reports affects banks’ risk-taking. This paper divides tone into normal tone and abnormal tone and examines their influences on the risk-taking of banks’ assets and liabilities, respectively. By collecting 326 samples of 38 Chinese A-share listed banks’ annual reports during 2000–2020, the study finds that a more positive normal tone in annual reports indicates an increase in bank risk-taking behavior in the future. The competitive pressure and the policy shock plays a negative moderating role whereas the profitability has a positive moderating impact. Besides, the impact of the positive tone on increasing bank’s risk-taking behavior is more prominent for state-owned banks than that of non-state-owned banks. However, the abnormal tone can not predict the bank’s future risk-taking behavior. Finally, our findings show that the normal tone can provide forward-looking valuable information and has a significant predictive ability for a bank’s future risk-taking behavior and its insolvency risk.

查看原文本刊更多论文

年报基调与银行冒险行为：来自中国的证据

本文探讨了年报的文本基调如何影响银行的风险承担。本文将语气分为正常语气和异常语气，并分别考察了正常语气和异常语气对银行资产和负债风险承担的影响。通过对2000-2020年38家中国a股上市银行年报的326份样本分析，研究发现，年报中更为积极的常态基调预示着未来银行风险承担行为的增加。竞争压力和政策冲击具有负向调节作用，而盈利能力具有正向调节作用。此外，积极基调对增加银行风险承担行为的影响在国有银行中比在非国有银行中更为突出。然而，异常基调并不能预测银行未来的风险承担行为。最后，我们的研究结果表明，正常语气可以提供前瞻性的有价值信息，并对银行未来的风险承担行为和破产风险具有显著的预测能力。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance