Risk Reporting: An Analysis of the German Banking Industry

Executive summary The recent financial crisis resulted in an increased attention on the risks of banks and their financial instruments. This article discusses the outcomes of a study on the quantity and quality of market, credit, and liquidity risk disclosures and the relationship 1) between the quantity and quality of disclosures, 2) between disclosures and bank size, 3) disclosures and bank profitability, and 4) disclosures and time. The 2005-2008 annual reports of a sample of German banks are studied and the disclosures are measured by using two disclosure index frameworks. The results provide a sound basis for future research like capital market research, event studies, and behavioral studies in relation to risk disclosures.

• View at Worldcat

Free Full Text ( Final Version , 473kb )