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Does the Disclosure of Performance Indicators Impact Bank Profitability? Empirical Study for the Romanian Banking System

Author

Listed:
  • Nina Sinitin

    (“1st of December 1918†University of Alba Iulia)

  • Adela Socol

    (“1st of December 1918†University of Alba Iulia)

Abstract

New banking regulations and the increasing attention of banks in publicly disclosing information through their websites have led in recent years to an intensification of Corporate Social Responsibility CSR disclosures based on diverse and the same time in-depth categories of information regarding not only the classic financial and accounting information, but also corporate governance, environment and social involvement in community disclosures. Content analysis was used to study the annual reports published on Romanian banks’ websites between 2013 and 2020, in order to find financial indicators disclosures, especially those related to banking performance. The relationship between bank profitability (measured by ROE and ROA), bank characteristics (set by size of the banks) and the disclosure degree was examined through OLS (Ordinary Least Square) regression panel model, using STATA. The results suggest that the evolution of performance banking indicators is influenced by the size of the banks and the disclosure degree.

Suggested Citation

  • Nina Sinitin & Adela Socol, 2021. "Does the Disclosure of Performance Indicators Impact Bank Profitability? Empirical Study for the Romanian Banking System," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 1153-1160, December.
    • Handle: RePEc:ovi:oviste:v:xxi:y:2021:i:2:p:1153-1160
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    References listed on IDEAS

    as
    1. Alina Georgiana Manta & Roxana Maria Bădîrcea & Ramona Pîrvu, 2018. "The Correlation between Corporate Governance and Financial Performances in the Romanian Banks," CSR, Sustainability, Ethics & Governance, in: Samuel O. Idowu & Catalina Sitnikov & Dalia Simion & Claudiu George Bocean (ed.), Current Issues in Corporate Social Responsibility, pages 165-182, Springer.
    2. Abdalmuttaleb Musleh Al-Sartawi & Sameh Reyad, 2018. "Signaling theory and the determinants of online financial disclosure," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 34(3), pages 237-247, October.
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    More about this item

    Keywords

    disclosure; banks; profitability; Romania;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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