Skip to main content

Research Repository

Advanced Search

Non-financial risk disclosure: The case of the UK’s distressed banks

Adelopo, Ismail

Non-financial risk disclosure: The case of the UK’s distressed banks Thumbnail


Authors

Ismail Adelopo Ismail.Adelopo@uwe.ac.uk
Professor in Accounting and Finance



Abstract

© 2017 Australasian Accounting Business and Finance Journal and Authors. This study investigates the narratives risk disclosures of the four British financial institutions that were adversely affected during the 2008 banking crisis. This investigation uses content analysis with the aid of the Concordance software to explore the risk disclosure of these companies for period 1998-2008.Risk disclosures in the Business Review sections of the annual reports of the banks were analysed into their historic and forward looking contents, and current firm performance was measured with respect to earnings per share and dividend while future performance was measured by growth in EPS and positive time lag in EPS. Consistent with its predictions, the study found significant negative relationship between extent of historic narrative disclosures and current and future firm performance, and a significant positive relationship between forward looking narrative risk disclosures and both current and future firm performance. Additional analysis shows that optimistic and pessimistic narrative risk disclosures are not significant in explaining current and future firm performance for these firms. Findings from this study are important for users of the financial statements and regulator because they highlight opportunity to detect warning signals for companies at risk of collapse. The study adds to the growing number of empirical investigations that provide alternative approach to understanding business failures.

Citation

Adelopo, I. (2017). Non-financial risk disclosure: The case of the UK’s distressed banks. Australasian Accounting, Business and Finance Journal, 11(2), 23-42. https://doi.org/10.14453/aabfj.v11i2.3

Journal Article Type Article
Acceptance Date May 11, 2017
Publication Date Jan 1, 2017
Deposit Date May 22, 2017
Publicly Available Date Mar 29, 2024
Journal Australasian Accounting, Business and Finance Journal
Print ISSN 1834-2000
Electronic ISSN 1834-2019
Peer Reviewed Peer Reviewed
Volume 11
Issue 2
Pages 23-42
DOI https://doi.org/10.14453/aabfj.v11i2.3
Keywords risk disclosure, narratives, business failures, content analysis, panel approach, Nothern Rock, Bradford and Bingley, Royal Bank of Scotland, Halifax Bank of Scotland
Public URL https://uwe-repository.worktribe.com/output/884503
Publisher URL http://dx.doi.org/10.14453/aabfj.v11i2.3

Files






You might also like



Downloadable Citations