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Is it Worth Being Transparent? Evidence from the Russian Banking System

Author

Listed:
  • Irina Andrievskaya

    (National Research University Higher School of Economics)

  • Mikhail Raschupkin

    (National Research University Higher School)

Abstract

Information disclosure is considered as an important prerequisite for the efficient functioning of a financial system. Costs and benefits of information disclosure in the banking system have been extensively theoretically and empirically investigated. However, the effect of voluntary transparency on bank market power and market share is still empirically unexplored. Our paper fills this gap in the literature, examining two hundred of the largest Russian banks in the period 2004-2013. The findings confirm that voluntary transparency – absolute and relative - affects a bank’s market power and market shares. Moreover, this relation depends on the bank’s asset quality

Suggested Citation

  • Irina Andrievskaya & Mikhail Raschupkin, 2015. "Is it Worth Being Transparent? Evidence from the Russian Banking System," HSE Working papers WP BRP 51/FE/2015, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:51/fe/2015
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    File URL: http://www.hse.ru/data/2015/12/08/1133968421/51FE2015.pdf
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    References listed on IDEAS

    as
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    6. Andrievskaya, Irina & Semenova, Maria, 2016. "Does banking system transparency enhance bank competition? Cross-country evidence," Journal of Financial Stability, Elsevier, vol. 23(C), pages 33-50.
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    Cited by:

    1. François Guillemin & Maria Semenova, 2020. "Transparency and market discipline: evidence from the Russian interbank market," Annals of Finance, Springer, vol. 16(2), pages 219-251, June.

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    More about this item

    Keywords

    banking system; voluntary information disclosure; market power; Lerner index;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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