Proceedings of the 6th Economic & Finance Conference, OECD Headquarters, Paris

INFORMATION DISCLOSURE AND BANK STABILITY; EVIDENCE FROM SUB-SAHARAN AFRICA

SARAH BOATENG

Abstract:

The heavily dependence of virtually all economies on banks for their financial intermediation cannot be overemphasize. The soundness of the banking sectors has positive association with the development of the financial markets and the economy. The banking sector and its governance reforms has gain prominence given the global financial crisis and the adverse impact on most economies. In view of this, there is an ongoing debate among policy makers, regulators, academia pursuing appropriate measures to foster banking sector stability. The aftermath of the financial crises identify inadequate information disclosure as one of the other factors resulting in the market failure. Hence, the surging debate on appropriate measures for disclosure of banking information to enhance corporate transparency and financial stability. The banking sector needs effective corporate governance at the firm level to mitigate agency problems and promote managerial discipline via improving disclosure of corporate information. The complexity of the banking sector makes it unique in terms of its corporate governance framework and information disclosure measures appropriate for its soundness and development hence the relevance of this study. The study explores bank scope data of Sub- Saharan Africa banks spanning for 2007 – 2012. This study aims to contribute to the debate by focusing of quality corporate governance measures and financial disclosure effect on bank stability. The paper examines the uniqueness of the banking sector in term of corporate governance and financial disclosures with the aim to establish the appropriate governance measures to enhance disclosure and bank stability for policy direction.

Keywords: Corporate governance, Information Disclosure, Bank Stability, Sub-Saharan Africa

DOI: 10.20472/EFC.2016.006.004

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