The Relationship between Bank Specific Characteristics and the Extent of Disclosure: Evidence from the Banking Sector in Bangladesh

Abstract

The fundamental motive of this study is to inspect the extent of disclosure of the banking companies in Bangladesh. To calculate the disclosure score of each sample bank, the un-weighted disclosure index has been used. To reveal the findings of this study, researchers have considered five conventional private commercial banks. A period of five years ranging from 2013 to 2017 has been selected for the study. Data have been collected from secondary sources and different statistical techniques like descriptive statistics as well as regression analysis with the respective models have been employed. The study reveals that the average disclosures scores of the sample banks are at a satisfactory level and the significant variation doesn’t exist in the disclosure scores among the sample banks. Multiple regression analysis has been conducted to know whether the significant relationship is available between the extent of disclosure and the specific characteristics of banks and the evidence confirm that the significant relationship is existing between the extent of disclosure and earnings per share, return on assets as well as net profit but not between the disclosure scores and capital adequacy ratio, debt-equity ratio, current ratio, loan deposit ratio, market capitalization ratio as well as total assets.