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Determinants of the disclosure level of the Pillar 3 recommendations of the Basel II Accord in the financial statements of Brazilian financial institutions

Author

Listed:
  • Lidiano de Jesus Santos

    (Rio de Janeiro Federal University – UFRJ)

  • Marcelo Alvaro da Silva Macedo

    (Rio de Janeiro Federal University – UFRJ)

  • Adriano Rodrigues

    (Rio de Janeiro Federal University – UFRJ)

Abstract

The objective of this article is to identify the determinants of the disclosure level of the information recommended by Pillar 3 of the Basel II Accord for the 100 largest banking institutions active in Brazil. For this purpose, we first analyze the disclosure level of each institution and then seek the determinants of this disclosure level. We start from five hypotheses, based on the following variables: size, nationality, voting concentration, type of capital and Basel index. To test these hypotheses we use difference of means tests and multiple regression analysis, at a 10% level of significance. We find that size, Basel index and type of capital are significant, meaning they are able to explain the disclosure level of the information analyzed. On the other hand, voting concentration and nationality are not significant.

Suggested Citation

  • Lidiano de Jesus Santos & Marcelo Alvaro da Silva Macedo & Adriano Rodrigues, 2014. "Determinants of the disclosure level of the Pillar 3 recommendations of the Basel II Accord in the financial statements of Brazilian financial institutions," Brazilian Business Review, Fucape Business School, vol. 11(1), pages 25-47, January.
    • Handle: RePEc:bbz:fcpbbr:v:11:y:2014:i:1:p:25-47
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    References listed on IDEAS

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    6. Gibbins, M & Richardson, A & Waterhouse, J, 1990. "The Management Of Corporate Financial Disclosure - Opportunism, Ritualism, Policies, And Processes," Journal of Accounting Research, Wiley Blackwell, vol. 28(1), pages 121-143.
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